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Limitation on liens

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Limitation on liens
A bond covenant that restricts in some way a firm's ability to grant liens on its assets.
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These include change of control provisions in the company's private placements and preferred securities as well as limitation on liens in the senior unsecured bonds and private placements.
Fitch Affirms Hearst-Argyle Television's IDR at 'BBB-'; Outlook Stable by Business Wire
Under ArvinMeritor's unsecured indentures, the company has a limitation on liens of up to 15% of the value of consolidated net tangible assets, which is defined to exclude certain 'principal property' assets.
Fitch Downgrades ArvinMeritor's IDR to 'BB', Unsecured to 'BB-'; ... by Business Wire
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