|
|
Covenant |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
CovenantA formal agreement made in a deed.Similar MatchesBreach of covenantBreach of covenantThe failure to obey a legal agreement. Breach of warranty A seller's inability to pass clear title to a buyer. Positive covenant (of a bond)Positive covenant (of a bond)A bond covenant that specifies certain actions the firm must take. Also called an affirmative covenant. 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. Deed 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. Negative covenantNegative covenantA bond covenant that limits or prohibits certain actions unless the bondholders agree. Further SuggestionsAffirmative covenantCovenants Rate covenant CC and Rs (Covenants, Conditions and Restrictions) Deed of covenant Bond covenant |
|
|
|