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This Practice Note highlights key drafting, negotiation and legal points for a standard bilateral debenture granted in respect of a specific transaction with one security provider. However, it can also be used for syndicated and all monies debentures and where there are multiple security providers. The security provider in this Practice Note is referred to as the Chargor and the secured party as the Lender.

This Practice Note also provides pointers to some frequently asked questions.

A debenture is typically taken where the lender wishes to take security over all assets in a company. For introductory information on debentures, including what is meant by a debenture and who can grant a debenture, see Practice Note: Key features of debentures.

For a more general introduction to drafting and negotiating security documents, including how to find a suitable precedent and initial considerations, see Practice Note: How to draft and negotiate security documents in loan transactions.

Debentures can be structured differently from each other, but will include similar clauses and often follow the same basic format. For convenience,