What Does Indenture to be Qualified Mean in Legal Terms?

Definition & Meaning

The term "indenture to be qualified" refers to a specific legal document associated with the issuance of securities. According to 15 USCS § 77ccc (9), it can mean either:

  • The indenture under which a security has been or will be issued, for which a registration statement has been filed.
  • The indenture related to a particular application that has been submitted.

This term is significant in the context of securities regulation, as it helps define the legal framework for the issuance of securities.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Here are a couple of examples to illustrate the term:

  • Example 1: A corporation issues bonds to raise capital. The indenture governing this bond issuance is filed with the Securities and Exchange Commission (SEC) as part of the registration process. This indenture is the "indenture to be qualified."
  • Example 2: A company applies for a new type of security offering. The indenture related to this application is considered the indenture to be qualified, pending approval from regulatory authorities. (hypothetical example)

Comparison with related terms

Term Definition Difference
Indenture A formal agreement between bond issuers and bondholders. An indenture to be qualified is specifically linked to a registration statement or application.
Registration Statement A document filed with the SEC that provides details about the security offering. The registration statement may reference an indenture to be qualified but is a separate legal document.

What to do if this term applies to you

If you are involved in issuing securities or managing related legal documents, consider the following steps:

  • Review the indenture and ensure it aligns with the registration statement or application.
  • Utilize US Legal Forms for templates that can assist in drafting or managing indentures.
  • If you encounter complexities, consult a legal professional for tailored advice.

Quick facts

Attribute Details
Typical Use Securities issuance
Governing Law 15 USCS § 77ccc
Key Parties Bond issuer, trustee, bondholders

Key takeaways

Frequently asked questions

An indenture is a formal agreement that outlines the terms between bond issuers and bondholders.