Benefits of Indenture Clause Samples

The "Benefits of Indenture" clause defines who is entitled to the rights and protections provided by the indenture agreement. Typically, this clause clarifies that only the parties to the indenture—such as the issuer, the trustee, and the bondholders—can benefit from its terms, and that third parties do not have enforceable rights under the agreement. By specifying the scope of beneficiaries, this clause prevents unintended parties from claiming rights or benefits, thereby ensuring clarity and limiting potential legal disputes over who can enforce the indenture's provisions.