Debt limitation

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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60) Under the special fund doctrine, when bonds are repaid from "special funds" rather than from a municipality's general fund, those bonds do not count toward the municipality's constitutional debt limitation.
5 percent debt limitation ratio to revenues that the city faces.
Yet another would be to propose and campaign for a combined tax and debt limitation constitutional amendment, which would stop the issuance of gross federal debt at, say, $5 trillion and shackle Congress's power to replace debt issuance with higher taxes.
5 billion revolver, roughly $829 million was available at last year-end, and the company was well within the debt limitation of 60% of total capital and a minimum interest coverage requirement of 3.
3 per cent of GDP, exceeding the legal limit of 60 per cent fixed under the Fiscal Responsibility Debt Limitation Act, 2005.
14000 billion which was also in violation of Fiscal responsibility and debt limitation law which does not cross debt to GDP ratio to 60 percent.
Standing committee asked the officials to given complete details of Fiscal Responsibility and Debt Limitation Act (FRDLA) 2005 and tell that how amendments can be made in this act and circulate the copies of this act among members.
0 percent permissible under the Fiscal Responsibility and Debt Limitation Act (FR&DLA) stands violated with impunity by the government because of endless borrowings from banks and foreign institutions.
Heavy borrowing during the last four years has brought the debt to 55 percent of GDP, which is almost near the limit of the Fiscal Responsibility and Debt Limitation Act.
The plaintiff, Bogota Mayor Steven Lonegan, argued that because appropriations-backed debt binds the state to paying the debt out of general revenues, it is subject to voter approval under New Jersey's so-called Debt Limitation Clause.
Non-recourse acquisition financing (a debt limitation covenant carve out under the indentures);
Replying to a question, Kaira said that in the presence of Fiscal Responsibility and Debt Limitation Act, no government could borrow more than 60 per cent of the Gross Domestic Product (GDP).