positive covenant

(redirected from Affirmative Covenants)

Positive covenant (of a bond)

A bond covenant that specifies certain actions the firm must take. Also called an affirmative covenant.

Positive Covenant

A bond covenant that requires the issuer to take certain actions. For example, a positive covenant may require an issuer to maintain enough liquid assets to cover the principal of the bond. More commonly, a positive covenant requires the issuer to have a certain amount of insurance or submit to periodic audits. It contrasts with a negative covenant, which prevents the issuer from taking the enumerated actions. It is also called an affirmative covenant.

positive covenant

A clause in a loan agreement that requires a specified action by the borrower. For example, a positive covenant may mandate that the borrower maintain a specific level of working capital or issue periodic reports to creditors. Compare negative covenant.
References in periodicals archive ?
Affirmative covenants require the borrower to do something, such as periodically submit financial statements or make interest payments in a timely manner.
The supplemental indenture eliminated substantially all of the restrictive covenants, certain affirmative covenants, certain events of default and certain conditions to legal defeasance or covenant defeasance contained in the indenture governing the Notes.
The proposed amendments to the indenture governing the Notes would eliminate substantially all of the restrictive covenants, certain affirmative covenants, certain events of default and certain conditions to legal defeasance or covenant defeasance contained in the indenture and the Notes.
They can take the form of affirmative covenants, in which a borrower agrees to keep promises such as producing sufficient cash flow to repay the debt, with an adequate cushion, and supplying financial information.
early-twentieth-century courts to enforce affirmative covenants running
More often, the parties will allocate environmental liabilities through a combination of price reductions, property carve-outs, affirmative covenants, indemnifications, escrows and insurance.
The proposed amendments eliminate from the Indenture substantially all of the restrictive covenants, certain affirmative covenants, certain events of default and certain conditions to legal defeasance or covenant defeasance.
Based on the results described above, MAALP, on behalf of CRLP, received and accepted the requisite consent from the holders of the Existing Notes and amended the indenture governing the Existing Notes to (1) allow for the satisfaction of CRLP's reporting obligations under such indenture to be satisfied through the filing or delivery of annual reports, quarterly reports and other documents of MAALP, (2) remove substantially all of the restrictive covenants and certain affirmative covenants applicable to CRLP, (3) eliminate an event of default and (4) modify certain other provisions.
Forward-looking statements include, among others, statements regarding the payment of the Total Consideration and Tender Offer Consideration, the elimination of restrictive covenants, certain affirmative covenants and certain conditions to legal defeasance or covenant defeasance contained in the indenture governing the Notes and the redemption of any untendered Notes, and are generally identified with words such as "believe," "could," "expect," "intend," "may," "plan," "will" and similar expressions.
Based on the results announced above, MAALP, on behalf of CRLP, has received the requisite consent from holders of the Existing 2014 Notes, Existing 2015 Notes and Existing 2016 Notes to amend the indentures governing such series of Existing Notes to (1) allow for the satisfaction of CRLP's reporting obligations under such indenture to be satisfied through the filing or delivery of annual reports, quarterly reports and other documents of MAALP, (2) remove substantially all of the restrictive covenants and certain affirmative covenants, (3) eliminate an event of default and (4) modify certain other provisions.
The proposed amendments to each of the indentures governing the Notes would eliminate substantially all of the restrictive covenants, certain affirmative covenants, certain events of default and substantially all of the restrictions contained in the indentures and the Notes.
MAALP, on behalf of CRLP, is also soliciting consents (the "Consent Solicitations") from holders of each series of Existing Notes to amend the indenture governing each series of Existing Notes to (1) allow for the satisfaction of CRLP's reporting obligations under such indenture to be satisfied through the filing or delivery of annual reports, quarterly reports and other documents of MAALP, (2) remove substantially all of the restrictive covenants and certain affirmative covenants, (3) eliminate an event of default and (4) modify certain other provisions.

Full browser ?