restrictive covenant

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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.

restrictive covenant

See covenant.

restrictive covenant

A deed restriction. See covenant.
References in periodicals archive ?
He said similar past applications had always been refused on the grounds of the restricted covenants, so they had no reason to expect this one would be allowed.
The court held, inter alia, that a restricted covenant and an employment contract between a hospital and a physician is not per se unreasonable and unenforceable.
There is also a restricted covenant on the Cathays Park site which states it can only be sold on to another public sector organisation.

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