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Bond covenant |
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Bond covenantA contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions.Bond covenant Similar MatchesDeed of covenantDeed of covenantA legal document which records the obligation of one individual to pay a specified sum to another for a specified number of years.The individual making the payment deducts tax at the basic rate and thus pays a net amount on which tax relief is obtained. If the recipient is a registered charity the payer can obtain tax relief up to his/her higher rate whilst the charity can claim back the amount deducted.In other words, it is a tax effective way for individuals to give to charity. Breach of covenantBreach of covenantThe failure to obey a legal agreement. Breach of warranty A seller's inability to pass clear title to a buyer. Affirmative covenantAffirmative covenantA bond covenant that specifies certain actions the firm must take. Restrictive covenantsRestrictive covenantsProvisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. CovenantCovenantA formal agreement made in a deed. Further SuggestionsNegative covenantCC and Rs (Covenants, Conditions and Restrictions) Rate covenant Deed of covenant Covenants Positive covenant (of a bond) |
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