Bond covenantA contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions.
Negative covenantNegative covenant
A bond covenant that limits or prohibits certain actions unless the bondholders agree.
Breach of covenantBreach of covenant
The failure to obey a legal agreement. Breach of warranty A seller's inability to pass clear title to a buyer.
Provisions in a bond indenture or preferred stock agreement that require the bond or preferred stock issuer to take certain specified actions (affirmative covenants) or to refrain from taking certain specified actions (negative covenants).
Affirmative covenantAffirmative covenant
A bond covenant that specifies certain actions the firm must take.
Deed of covenantDeed of covenant
A 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.
Further SuggestionsRate covenant
Deed of covenant
Positive covenant (of a bond)
CC and Rs (Covenants, Conditions and Restrictions)