Indentor

An indentor is a person or entity that legally binds themselves to a contractual agreement, typically involving the financing of infrastructure projects, the issuance of bonds, or other financial instruments. They are responsible for fulfilling the terms outlined in the indenture, a formal legal document that specifies the rights and obligations of all parties involved. The indentor acts as the issuer or borrower, while the indenture serves as the guiding document for the financial transaction, ensuring protection for all parties.

Indentor meaning with examples

• The city served as the indentor, issuing municipal bonds to fund the new public transit system. They were obligated to meet the repayment schedule outlined in the indenture. Failure to do so would result in penalties. This was a major step forward for the city.
• As the primary indentor, the corporation agreed to the terms of a large loan from the bank. The indenture covered a range of specifications, including a predetermined interest rate and collateral. The corporation was willing to comply with all terms.
• The property developer took on the role of the indentor for a series of bond offerings, used for developing luxury residential complexes. The indenture was legally binding for the next 30 years. The developers had the right to the profits from these sales.
• During the project, the utility company assumed the role of the indentor for the issuance of green bonds to invest in renewable energy infrastructure. The indentor's goal was to ensure clean energy for the whole region.
• The investment firm acted as the indentor for a high-yield debt instrument, specifying the terms and conditions of repayment in the indenture. The indentor understood the risks. The deal was done to help grow their business.