This Act applies to debt securities, such as bonds, debentures, and notes that are made available for public sale. These types of securities cannot be offered for sale to the public if there is a trust indenture agreement already in existence between the bond issuer and the bond holder that follows the rules specified by this Act. The Act also requires that the trustee be a corporation with a minimum amount of capital, that the trustee conforms to high standards of conduct, that the trustee not have conflicting interests that would interfere with its tasks on behalf of the holders of securities, and that the trustee prepare and send reports to security holders. The Act also requires the trustee to maintain a list of securities holders, which must be issued to them at their request.
Trust Indenture Act of 1939