Debt Security

Debt Security means:
security representing money borrowed that must be repaid and having a fixed amount, a specific maturity or maturities, and usually a specific rate of interest or an original purchase discount, such as a bill, bond, commercial paper, or note. An U.S. Internal Revenue Service (IRS) agent may reclassify a debt as equity, disallowing the interest expense deduction, in the case of a thin corporation. Former IRC (check if this IRC provision is current here) §385.

See also other Tax Terms and Definitions in U.S.A.

thin capitalization.