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Irredeemable Debenture
Source:
Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order
it here)
A perpetual
type of debenture, called DEBENTURE STOCK, issued particularly by the
British railroads, which had no fixed date of maturity or other provision
for repayment of the principal, except in case of liquidation. Debenture stock of the British railroads was issued in both
redeemable and irredeemable types with interest rates ranging from 2.5%
to 5%. The British government
took over the British railroads in 1939 as a war measure at a fixed annual
rental, and under the terms of the Transport Act of 1947, approved August
6, 1947, the British railroads were nationalized as of January 1, 1948.
Security holders, including holders of irredeemable debenture stock,
received 3% Guaranteed British Transport Stock, with maturities of 1978-1988
and 1968-1973.
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