Rate covenantA provision governing a municipal revenue project financed by a revenue bond issue, which establishes the rates to be charged users of the new facility.
A formal agreement made in a deed.
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.
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.
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.
Affirmative covenantAffirmative covenant
A bond covenant that specifies certain actions the firm must take.
CC and Rs (Covenants, Conditions and Restrictions)
Deed of covenant
Breach of covenant