Negative Covenant

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Negative covenant

A bond covenant that limits or prohibits certain actions unless the bondholders agree.

Restrictive Covenant

A bond covenant that forbids the issuer from taking certain actions. For example, a restrictive covenant may prevent an issuer from issuing more debt until the bond matures. More commonly, a restrictive covenant limits the dividends an issuer may pay to shareholders so as to reduce the risk to the bond. It contrasts with a positive covenant, which requires the issuer to take certain enumerated actions. It is also called a negative covenant.

negative covenant

A clause in a loan agreement that prohibits the borrower from an activity. For example, a negative covenant may restrict the payment of dividends or the issuance of new debt. Compare positive covenant.

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Affirmative Covenant Bond Covenant covenant Debt Limitation Limitation on Merger, Consolidation, or Sale Negative Pledge Negative Pledge Clause Positive Covenant Protective Covenant restrictive covenant Restrictive Covenants			Forbearance agreements also contain affirmative and negative covenants, along with certain conditions-most often that the borrower will seek professional financial planning help or sell his assets to repay the debt. Forbearance Agreements by Mark Warner / Law community This new credit facility, which matures in February 2012, contains customary affirmative and negative covenants, including, among other things, covenants requiring Command to maintain certain financial ratios. Command Security Corporation Announces New $20 Million Revolving ... by Business Wire There are no negative covenants, restrictions on future fundings, penalties or liquidated damages in the agreement. Typhoon Secures $20 Million Financing Commitment and Announces 30 to ... by Business Wire			NAV Arbitrage navigable line navigable waters NBC NC NCC NE Near Money Nearby Nearby Futures Contract Nearby Month Nearest Month Necessary Necessities of Life Neckline NECTAs Negative Acknowledgment negative amortization Negative Amortization Cap Negative Amortizing Mortgage Negative Authorization Negative Balance Negative Carry negative cash flow Negative Convexity Negative Covenant Negative Duration negative easement Negative Equity negative equity loans Negative Goodwill Negative Income Tax Negative Interest Rate negative leverage Negative Net Worth Negative NPV tie-in project Negative Obligation negative or positive leverage Negative Pledge Negative Pledge Clause Negative Points Negative Volume Index Negative working capital Negative Yield Curve Neglected Firm Effect Neglected-Firm Effect negligence negligent fraud Negligent Trustee negligent waste Negociable			Negative Channel Field Effect Transistor Negative Channel Transition negative charge negative charge Negative Chemical Ionization Mass Spectrometry negative chemotaxis Negative Christmas Event Negative Cofactor 2 negative comments on judge okay? Negative Component negative compulsion Negative concord Negative condition negative conductor Negative consequentialism Negative consequentialism Negative Constructive negative contrast negative contrast negative contrast negative contrast Negative Contrast Electron Microscopy negative convergence negative convergence negative convergence negative convergence negative convergence Negative convexity negative correlation negative correlation Negative Covenant Negative Covenants Negative Covenants Negative Covenants Negative Covenants Negative Covenants Negative Credibility Feedback Loop Negative credit rating Negative credit rating Negative credit rating Negative crystal Negative crystal Negative declaration Negative declaration Negative declaration negative declination negative defect negative defect negative defect negative defect Negative Delta V Negative differential resistance Negative differential resistance Negative differential resistance Negative duration Negative Durations Negative dynamic resistance Negative dynamic resistance negative easement negative easement Negative edge pool

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