Debentures

Debentures are unsecured debts supported only by the borrower's credit, or evidence of good credit, rather than a specific property or collateral. They are, however, secured by other assets not pledged to the debt. If the borrower is unable to pay off the loan, the lender (who is also the debenture holder) is considered a general creditor, which means he can go after any unpledged assets. The main advantage of a debenture is that it takes the burden away from specific assets, which the borrower may want to finance at a later time.