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.

Bond Covenant

An agreement between the issuer and holder of a bond, requiring or forbidding certain actions of the issuer. Positive covenants require actions while negative covenants forbid them. The exact terms of a bond covenant must be written in the bond indenture.
References in periodicals archive ?
Therefore, it is feasible to include a bond covenant requiring insurance such that the bond issue raises enough to cover the insurance premium as well as the other monies necessary.
Deposit and investment act may be affected by local ordinance, written policy, bond covenant or management practice.
Addressing unfavorable events such as bond covenant default and bankruptcy requires leadership, innovation, and a level of intensity that many hospitals in crisis cannot produce themselves," says IRG President Kenneth Venuto.
The system has experienced growth in revenues the last five years primarily due to the series 2006 bond covenant that requires the county board of commissioners to levy rate increases of at least 3% for residential disposal and tipping fees through fiscal year 2011.
However, there are numerous examples of staff reductions and even bond covenant violations due solely to the Administration's failure to pay the rates required by DPW's own rules.
This was evident when the revenue bondholders agreed to revise their contingent funding covenant so that the tribe would be able to secure its GO bond covenant amendment and avoid a default on the GO bonds.
5 million with allowing PGW to weather one of the warmest winters in history and meet its bond covenant.
5 million, which in combination with a higher demand charge and the refunding portion of this bond transaction will enable PGW to meet its bond covenant.
Additionally, it is DCR's view that the credit risks associated with the ownership by CE are mitigated by bond covenant protection measures.
This policy addressed bond covenant violations in 1988, 1989, and 1992.
Consequently, the authority has a limited margin of safety with regard to its bond covenants and in the long-term, will continually be susceptible to changes in business and economic activity which will put consistent pressure on the authority's ability to manage its debt service and bond covenant requirements.
This recently contributed to Fitch placing the district on Rating Watch Negative on March 20, 2008 following disclosure that the district's revenues from its water utility during fiscal 2008 had been insufficient to meet the bond covenant requirement that it deposit approximately equal amounts monthly into the debt service fund in order to pay annual debt service costs.