Debt limitation

(redirected from Debt Limitations)

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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The County's Waiver of Right to Assert Constitutional Debt Limitations May Still Be Subject to Challenge
The countries such as Turkey, Poland and Mexico have not adopted fiscal responsibility legislation for subnational but they have established fiscal rules or debt limitations for SNGs.
The taxpayers argued that the debt limitations of Sec.
52) With the exception of South Dakota, each of these states' TIF statutes expressly provides that TIF debt does not count toward constitutional debt limitations.
8 to 1 on or after March 31, 2007 until maturity; -- Current debt limitations on pipeline company borrowers -- EPNG, TGP, ANR, and CIG -- will continue, which include a restriction on the pipeline companies' incurrence of incremental borrowings if such debt would cause their debt to EBITDA ratio to exceed 5 to 1; and -- A cross-default limit of $200 million that was also in the previous credit agreements.
Further, mutual investment goals should be stated in the agreement, especially regarding capital requirements, debt limitations, re-investment criteria and holding period.
The proposed COPs would not materially affect the district's low debt ratios and debt carrying charges would remain manageable and comfortably within separate debt limitations imposed by the state and the district.
While capital plans remain manageable, statutory debt limitations could hinder future capital projects.
The city's prudent financial practices in the areas of fund balance preservation, conservative budgeting, and debt limitations should continue to ensure the maintenance of healthy financial flexibility, despite broader revenue-raising pressures associated with the current recessionary environment.
It provides assistance for school districts hampered by debt limitations.
The city's prudent financial practices in the areas of debt limitations, fund balance preservation, and conservative budgeting should continue to ensure maintenance of healthy financial flexibility.