Covenants running with the land financial definition of Covenants running with the land. Covenants running with the land finance term by the Free Online Dictionary.

Covenant

An agreed action to be undertaken (Positive) or not done (Negative). A breach of a covenant is a default.

Covenant

A provision in an indenture. An indenture sets the terms of a bond; its terms include the coupon rate, the period until maturity, and whether the bond comes with any special features like convertibility or whether it is callable. A covenant within an indenture states what actions the issuer and the bondholder may or may not take in certain situations. Covenants (and indentures generally) exist to reduce the risk to all parties to a bond.

covenant

A clause in a loan agreement written to protect the lender's claim by keeping the borrower's financial position approximately the same as it was at the time the loan agreement was made. Essentially, covenants spell out what the borrower may do and must do in order to satisfy the terms of the loan. For example, the borrower may be prohibited from issuing more debt by using certain assets as collateral. Likewise, the borrower may be required to issue reports to bondholders on certain dates. Also called protective covenant, restrictive covenant. See also negative covenant, positive covenant.

Case Study In February 2002 Qwest Communications issued a warning that the company was in danger of violating a bank loan covenant by the end of June. A major slump in the telecom business combined with heavy indebtedness caused concern that the firm's debt would exceed the specified maximum of 3.75 earnings before interest, taxes, depreciation, and amortization. A month later the company announced that in return for agreeing to use $608 million from a $1.5 billion bond issue to reduce bank debt, the bankers agreed to a concession that raised the covenant maximum to 4.25 until the end of September, and 4.00 during the following six months. The covenant had been included as part of the original bank loan agreement in order to help insure that Qwest could continue to meet its existing obligations before taking on additional debt.

covenant

An agreement. For example,one can make a “covenant not to compete”a provision of a business sale,or one can write a restrictive covenant regarding the use of real property into the real estate records,which binds all owners whether it is contained in their specific deed or not.

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Affirmative Covenant Bond Covenant Clause restrictive Clausulas contractuales conditions, covenants, and restrictions Debt Limitation Limitation on Merger, Consolidation, or Sale Limitation on subsidiary borrowing Negative Covenant Negative Pledge Clause Positive Covenant private covenant Protective Covenant Rate Covenant Ratio Covenant reciprocal negative easements restrictive covenant Restrictive Covenants the usual covenants	There seems to have been some confusion in the minds of the Company principals and their lawyers about whether these restrictions were covenants running with the land or personal contracts. Private law or social norms? The use of restrictive covenants in ... by Jaffee, Valerie / Yale Law Journal	Coupon Rate coupon stripping Coupon-Equivalent Rate coupon-equivalent yield Coupure valeur nominale Courbe de demande Courbe en J Courbe isoquante Cours vendeur court Cout d'emission Cout de portage Cout de remplacement Cout et fret Cout historique Cout implicite Cout, Assurance, Fret Couts fixes Couverture Couverture a terme Couverture de defaillance Couverture du besoin de financement Covariance Covarianza covenant Covenants running with the land Cover Cover Bid Coverage Coverage Initiated Coverage Ratio Coverage Ratios Coverdell Education Savings Account Covered Covered Call covered call option Covered Call Writing Strategy Covered Foreign Currency Loan Covered Interest Arbitrage Covered Interest Rate Parity Covered Option Covered or hedge option strategies Covered position Covered Put Covered Put Option Covered Security Covered Straddle Covered Straddle Write Covered Writer Covering CPA	Covenanters Covenanters Covenanters covenanting covenanting covenanting covenanting covenanting covenantor covenantor covenantor covenantor covenantor covenantors covenantors covenantors covenantors covenantors covenants covenants covenants covenants covenants Covenants for Title Covenants for Title Covenants for Title Covenants for Title Covenants for Title Covenants on Human Rights Covenants performed Covenants running with the land Covenants, Conditions and Restrictions Covenants, Conditions and Restrictions Covenants, Conditions and Restrictions Covenants, Conditions and Restrictions Covenants, Conditions and Restrictions Covenants, conditions, and restrictions Covenants, conditions, and restrictions Covenants, conditions, and restrictions Covenants, conditions, and restrictions Covenants, conditions, and restrictions Covenants, conditions, and restrictions Covenous Covens Covens Covent Covent Garden Covent Garden Covent Garden Area Trust Covent Garden Chamber Orchestra Covent Garden Community Association Covent Garden Market Covent Garden Market Covent Garden Market Authority Covent Garden Piazza Covent Garden Piazza Covent Garden, London, England Covent Garden, London, England Covent Gardens Covent Gardens Coventree Consulting Group International

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References in periodicals archive

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Affirmative Covenant
Bond Covenant
Clause restrictive
Clausulas contractuales
conditions, covenants, and restrictions
Debt Limitation
Limitation on Merger, Consolidation, or Sale
Limitation on subsidiary borrowing
Negative Covenant
Negative Pledge Clause
Positive Covenant
private covenant
Protective Covenant
Rate Covenant
Ratio Covenant
reciprocal negative easements
restrictive covenant
Restrictive Covenants
the usual covenants

There seems to have been some confusion in the minds of the Company principals and their lawyers about whether these restrictions were covenants running with the land or personal contracts.

Private law or social norms? The use of restrictive covenants in ... by Jaffee, Valerie / Yale Law Journal

Coupon Rate

coupon stripping

Coupon-Equivalent Rate

coupon-equivalent yield

Coupure valeur nominale