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Bond covenant

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Bond covenant
A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions.

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Sagging occupancy, less than efficient operations, unacceptable profit margins bond covenant violations
Some bond covenants allow for the transfer of debt to another jurisdiction; others don't.
Deposit and investment act may be affected by local ordinance, written policy, bond covenant or management practice.
 
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