Debenture Stock

A stock or fund representing money borrowed by a company or public body, in England, and charged on the whole or part of its property. It differs from debentures chiefly in these respects: The title of each original holder appears in a register, instead of being represented by an instrument complete in itself; and the stock is capable of being transferred in any amounts, unless the regulations of the company, etc., forbid the transfer of amounts or fractions less than £ 10, or the like. Provision is sometimes made for issuing to each holder a certificate representing the amount of his stock, transferable by delivery, so as to entitle the bearer for the time being to the stock in question. Such certificates generally have coupons for interest attached to them, and, while they are outstanding, the stock ceases to be transferable on the register. relating to debenture stock are the company clauses acts of 1845 and 1863, the commissioners clauses act of 1847, and the local loans act of 1875. Debenture stock issued under these acts is not within the mortmain or charitable uses act.

9 Ch. Div, 337.