a. Indenture – the formal agreement between lender and buyer specifying the terms of the loan and the relationship of the parties.

b. Trustee – a third party who represents the interests of the lender(s) to the borrower.

c. Mortgage – a legal agreement between borrower and lender, distinct from but accompanying the loan agreement, which specifies the loan collateral.

d. Debenture – a bond without collateral.

e. Sinking fund – an account set up by the borrower into which the borrower regularly deposits money to repay the loan.

f. Serial bond – a bond carrying a serial number which permits it to be specifically identified and (possibly) retired prior to its maturity date.