Debt Limitation

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Debt limitation

A bond covenant that restricts the firm's ability to incur additional indebtedness in some way.

Debt Limitation

A negative covenant in a bond indenture limiting the issuer's ability to acquire more debt before the bond matures. Debt limitation may take a variety of forms. For example, the indenture may restrict the debt service coverage ratio, meaning that the company can acquire theoretically unlimited debt provided it increases it income to such a level that it can service the debt. On the other hand, debt limitation may set a maximum dollar amount of debt that the issuer may acquire during the life of the bond, or even may prevent the issuer from becoming any more indebted at all. These latter debt limitations are more likely when the issuer is not on sound financial footing and possibly is issuing junk bonds. A debt limitation should not be confused with a debt limit, which is similar but is a legal requirement on a government.

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Interest Coverage Test			46) The statute expressly provides that TIF bonds may not be secured by the "faith and credit" of the local government (47) and that they will not count toward the issuing municipality's constitutional debt limitation. The use of pilot financing to develop Manhattan's Far West Side by Cerciello, Amy F. / Fordham Urban Law Journal Information on debt limitations (most recent year for calculation, 10 years for results). Major changes to CAFR statistical section: GASB statement no. 44 will ... by Gauthier, Stephen J. / Government Finance Review However, any subsequent acquisition debt taken out to improve the taxpayer's home may not be deductible since the $1 million limit has been met Nevertheless, this interest may still be deductible if it falls within the purview of the home equity debt limitations noted below. The many tax benefits of owning real estate by Lai, Richard T. / Review of Business			Debenture Stock Debenture subordinado debit Debit Balance Debit Card Debit Spread Debit-Balance Theory Debitar Debiteur Debito Debito extraordinario Debito obbligazionario debt Debt Assignment Debt Bomb Debt Capacity debt capital Debt Ceiling Debt Consolidation debt coverage ratio Debt Displacement Debt Financing Debt instrument Debt leverage Debt Limit Debt Limitation Debt Management Debt Management Ratio Debt market Debt outstanding subject to limitation Debt Ratio debt relief Debt Restructuring Debt Retirement Debt Securities Debt Security debt service debt service constant Debt Service Coverage Debt service parity approach debt service ratio Debt swap debt to equity ratio Debt Warrant Debt-Based Asset Debt-for-Equity Swap Debt-Service Coverage Ratio Debt-to-Capital Ratio Debt-to-Equity Ratio Debt-to-GDP Ratio Debt-to-Income Ratio			Debt Enforcement and Bankruptcy Act Debt equity ratio Debt Equity Ratios Debt Equity Swap Debt Equity Swaps Debt Exchangeable for Common Stock Debt Exchangeable for Common Stock Debt Exchangeable for Common Stock Debt finance Debt finance Debt finance Debt finance Debt finance Debt Financial Group Debt Financing Debt for equity Debt for equity swap Debt forgiveness Debt Forgiveness Program Debt GDP Ratio Debt GDP Ratios Debt Income Ratios Debt Indicator debt instrument debt instrument Debt Instruments Depository and Clearing Co., Ltd. Debt leverage debt limit debt limit debt limit Debt Limitation Debt Limits Debt Limits debt management Debt Management and Financial Analysis System Debt Management Company Debt Management Credit Counseling Debt Management Credit Counseling Corp. Debt Management Group of Ontario Debt Management Office Debt management plan Debt Management Program debt management ratio Debt Management Ratios Debt Management Services Debt Management Servicing Center Debt Management Telephone Centre Debt market Debt monetization Debt monetization Debt Negotiation Services Debt of Bones Debt of Honor Debt of Honour Debt of nature Debt of record Debt on our Doorstep

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