legal document that specifically states the conditions under which a bond has been issued, the rights of the bondholders, and the duties of the issuing corporation; also called bond indenture; deed of trust. An indenture normally contains a number of standard and restrictive provisions (covenant), including a sinking fund requirement, a minimum debt-equity ratio to be maintained, and an identification of the collateral if the bond is secured. It also covers redemption rights and call provisions. The indenture provides for the appointment of a trustee to act on behalf of bondholders.