CovenantA formal agreement made in a deed.
Restrictive covenantsRestrictive covenants
Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends.
Affirmative covenantAffirmative covenant
A bond covenant that specifies certain actions the firm must take.
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.
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.
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.
Further SuggestionsDeed of covenant
CC and Rs (Covenants, Conditions and Restrictions)