In a bond indenture, the term "security interest" refers to collateral pledged against the bond.

Name: In a bond indenture, the term "security interest" refers to collateral pledged against the bond.
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A security interest is a legal claim on collateral that secures a debt or other obligation, such as a bond. The bond indenture often specifies the assets or property that are pledged as security for the bond, giving bondholders a priority claim over those assets in the event of default or bankruptcy.

In a Bond Indenture, the Term "Security Interest" Refers to Collateral