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 ?
Mr Canning claims although the development was shown the green light by Coventry City Council's planning committee, it goes against the legally-binding restricted covenant in the conveyance of the property.
Employers occasionally resort to restricted covenants restraining competing activity after the termination of an employee's employment.
Both Cllr Dowd and Mr Pugh believe the land should have been retendered once it was agreed to remove the restricted covenants.

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