Indenture Agreement: Definition & Sample

David borrowed a sum of $1,000,000 from SDF Bank to purchase a new real estate property. He signed the debt agreement with the lender to make the principal repayment at the end of five years and to make interest payments at the agreed schedule’s end. Therefore, SDF Bank agreed to the bullet payment for the principal component, while David has to make the interest payments. It will breach the agreement if he fails to repay the principal cash realizable value formula at the end of the loan tenure. Historically, this type of contract was used to legally bind one person, such as an indentured servant, to work for another, as a judicial punishment, or for debt repayment. Trust indentures may not be included in every bond contract, given thatsome government bonds disclose similar information (the duties andrights of the issuer and bondholders) in a document called the bond resolution.

Indentured Servitude vs. Slavery

1. Resign or be moved, all the assets, property, rights, powers, trusts, duties and obligations of such additional or separate trustee shall revert to the Indenture Trustee until a successoradditional or separate trustee is appointed as provided in this Section 9.02(a).
2. “H.15(519)” means the weekly statistical release designated as such, or any successor publication, published by the Board of Governors of the Federal Reserve System.
3. Government, or upon the written consent of the Indenture Trustee, otherGovernment Entity, against such risk in an amount that, when added to the amount of insurance (including permitted self-insurance), if any, against such risk that the Owner (or any Permitted Lessee) may continue to maintain, in accordance with thisSection 4.06, during the period of such requisition or transfer, shall be at least equal to the amount of insurance against such risk otherwise required by this Section 4.06.
4. IN WITNESS WHEREOF, the Owner has caused this Trust Indenture Supplement to be duly executed by one of its officers, thereunto dulyauthorized, on the day and year first above written.

“DebtRate” means, with respect to (i) any Series of Equipment Notes, the rate per annum specified for such Series under the heading “Interest Rate” in Schedule I to the Trust Indenture, and (ii) any other purpose, withrespect to any period, the weighted average interest rate per annum during such period borne by the outstanding Equipment Notes, excluding any interest payable at the Payment Due Rate. “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized orrequired by law to close in New York, New York, Phoenix, Arizona, or Wilmington, Delaware. “Applicable Pass ThroughTrust” means each of the separate pass through trusts created under the Applicable Pass Through Trust Agreements. “Airframe Manufacturer” means Airbus S.A.S., a société par actionssimplifiée organized and existing under the laws of the Republic of France. “Actual Knowledge” means (a) as it applies to the Indenture Trustee, actual knowledge of a responsible officer in the Corporate Trust Office, and (b) as it applies to the Owner,actual knowledge of a Vice President or more senior officer of the Owner or any other officer of the Owner having responsibility for the transactions contemplated by the Operative Agreements; provided that each of the Owner and the IndentureTrustee shall be deemed to have “Actual Knowledge” of any matter as to which it has received notice from the Owner, any Note Holder or the Indenture Trustee, such notice having been given pursuant to Section 11.05 of the TrustIndenture.

Recommended Articles

Except as otherwise expressly provided herein, the Owner shall be entitled to operate, use, locate, employ orotherwise utilize or not utilize the Airframe, any Engine or any Parts in any lawful manner or place in accordance with the Owner’s business judgment. (c) For the avoidance of doubt, no amount will be distributed pursuant to this Article IIIto any holder of a note issued under a Related Indenture that is not a Related Note Holder (as such). Of a redemption of Equipment Notes pursuant to Section 2.10(b), if a particular Series is not being redeemed pursuant thereto, no application of funds shall be made pursuant to the paragraphin clause “Second” above that refers to such Series in connection with such redemption. No Make-Whole Amount shall be due and payable on the Equipment Notes as a consequence of the redemption of the Equipment Notes as a result of an Eventof Loss with respect to the Airframe or the Airframe and one or more Engines. (a) No redemption of any Equipment Note may be made except to the extent and in the manner expressly permitted by this Trust Indenture. There shall be maintained an Equipment Note Register forthe purpose of registering transfers and exchanges of Equipment Notes at the Corporate Trust Office of the Indenture Trustee or at the office of any successor in the manner provided in Section 2.06 of the Trust Indenture.

Applications of indentures

But exploitation of laborers from China and elsewhere in Asia to work on American projects continued. But landowners, reluctant to deal with freed laborers and their demands for land and other rights, switched to using enslaved people as a more profitable alternative. This preference continued in the colonies and then the United States until the abolition of slavery in 1865. Indentured servants enjoyed little personal freedom and some contracts allowed landowners to extend the work period for servants who were accused of behavior that was deemed improper. I submitted a project for a lawyer’s help within a day I had received over 6 proposals from qualified lawyers. “Wet Lease” means any arrangement whereby the Owner or a Permitted Lessee agrees to furnish the Aircraft, Airframe or any Engine to a third party pursuant to which the Aircraft, Airframeor Engine shall at all times be in the operational control of the Owner or a Permitted Lessee, provided that the Owner’s obligations under the Trust Indenture shall continue in full force and effect notwithstanding any such arrangement.

The evolution of indentures

I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations. This Trust Indenture Supplement shall be construed as supplemental to the TrustIndenture and shall form a part thereof. The Trust Indenture is each hereby incorporated by reference herein and is hereby ratified, approved and confirmed.

Why are credit indentures important in the world of finance?

Fiji, Grenada, Malaysia, Trinidad and Tobago, Kenya, and Guyana also have significant populations of Indian descent owing to the Indian indenture system, which was organized by British colonial administrators during the 1830s and ended in 1917. In the early history of the United States, many European immigrants served a https://accounting-services.net/ period of indentured labour in order to pay the cost of their transportation. This practice was common during the 17th and 18th centuries, where over half of immigrants worked off an average of three years’ servitude. Indenture refers to a legal and binding agreement, contract, or document between two or more parties.

But the locals refused, and as a result, the British introduced the Indian indenture system, resulting in a permanent Indian South African presence. On 18 January 1826, the Government of the French Indian Ocean island of Réunion laid down terms for the introduction of Indian labourers to the colony. Each man was required to appear before a magistrate and declare that he was going voluntarily. The contract was for five years with pay of ₹8 (12¢ US)[citation needed] per month and rations provided labourers had been transported from Pondicherry and Karaikal. The first attempt at importing Indian labour into Mauritius, in 1829, ended in failure, but by 1834, with abolition of slavery throughout most of the British Empire, transportation of Indian labour to the island gained pace. Like any loan, an indenture could be sold; most masters had to depend on middlemen or ships masters to recruit and transport the workers, so indentureships were commonly sold by such men to planters or others upon the ships arrival.

The Indenture Trustee shall not have any duty or obligation to use, operate, store, lease, control, manage, sell, disposeof or otherwise deal with the Aircraft or any other part of the Collateral, or to otherwise take or refrain from taking any action under, or in connection with, this Trust Indenture or any part of the Collateral, except as expressly provided by theterms of this Trust Indenture or as expressly provided in written instructions from Note Holders as provided in this Trust Indenture; and no implied duties or obligations shall be read into this Trust Indenture against the Indenture Trustee. TheIndenture Trustee agrees that it will in its individual capacity and at its own cost and expense (but without any right of indemnity in respect of any such cost or expense under Section 8.01 hereof), promptly take such action as may benecessary duly to discharge all liens and encumbrances on any part of the Collateral which result from claims against it in its individual capacity not related to the administration of the Collateral or any other transaction pursuant to this TrustIndenture or any document included in the Collateral. Provisions of Section 6.03, if the Indenture Trustee shall not have received instructions as above provided within 20 days after mailing notice of such Event of Default to the Note Holders,the Indenture Trustee may, subject to instructions thereafter received pursuant to the preceding provisions of this Section 6.01, take such action, or refrain from taking such action, but shall be under no duty to take or refrain from takingany action, with respect to such Event of Default or Default as it shall determine advisable in the best interests of the Note Holders; provided, however, that the Indenture Trustee may not sell the Aircraft or any Engine without theconsent of a Majority in Interest of Note Holders. For all purposes of this Trust Indenture, in the absence of Actual Knowledge on the part of the Indenture Trustee, the Indenture Trustee shall not be deemed to have knowledge of a Default or anEvent of Default (except, the failure of the Owner to pay any installment of principal or interest within one Business Day after the same shall become due, which failure shall constitute knowledge of a Default) unless notified in writing by theOwner or one or more Note Holders. (c) The Note Holders shall be entitled, at any sale pursuant tothis Section 5.02, to credit against any purchase price bid at such sale by such holder all or any part of the unpaid obligations owing to such Note Holder and secured by the Lien of this Trust Indenture (only to the extent that such purchaseprice would have been paid to such Note Holder pursuant to Article III hereof if such purchase price were paid in cash and the foregoing provisions of this subsection (c) were not given effect).

The Universal Declaration of Human Rights (adopted by the United Nations General Assembly in 1948) declares in Article 4 “No one shall be held in slavery or servitude; slavery and the slave trade shall be prohibited in all their forms”.[54] More specifically, it is dealt with by article 1(a) of the United Nations 1956 Supplementary Convention on the Abolition of Slavery. The agreement mentions that XYZ Inc. would maintain a debt-equity ratio of 2.0x throughout the tenure of the loan, and any breach would trigger the event. Therefore, the borrower (XYZ Inc.) and the lender (ABC Bank) agreed upon this condition of maintaining the debt-equity ratio above 2.0x. XYZ Inc. is obliged to maintain the ratio throughout the loan tenure and is expected to infuse more equity capital if the ratio falls below the threshold figure of 2.0x. He has executed over £60 billion in notional value of transactions across financing, M&A and derivatives with global corporates, private equity funds and financial sponsor groups. Mauritius saw over half a million laborers arrive from the Indian subcontinent to work on sugar plantations; Indo-Mauritians today make up a majority of the country’s population.

The IndentureTrustee agrees to accept, in lieu of insurance against any risk with respect to the Aircraft described in Annex B, indemnification from, or insurance provided by, the U.S. Government, or upon the written consent of the Indenture Trustee, otherGovernment Entity, against such risk in an amount that, when added to the amount of insurance (including permitted self-insurance), if any, against such risk that the Owner (or any Permitted Lessee) may continue to maintain, in accordance with thisSection 4.06, during the period of such requisition or transfer, shall be at least equal to the amount of insurance against such risk otherwise required by this Section 4.06. All the terms of this Trust Indenture, (2) the Owner shall remain primarily liable for the performance of all of the terms of this Trust Indenture and all the terms and conditions of thisTrust Indenture and the other Operative Agreements shall remain in effect and (3) no lease or transfer of possession otherwise in compliance with this Section 4.02(b) shall (x) result in any registration or re-registration of anAircraft, except to the extent permitted by Section 4.02(e) or the maintenance, operation or use thereof except in compliance with Sections 4.02(c) and 4.02(d) or (y) permit any action not permitted to the Owner hereunder.