covenant

(redirected from covenantal)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

Covenant

An agreed action to be undertaken (Positive) or not done (Negative). A breach of a covenant is a default.

Covenant

A provision in an indenture. An indenture sets the terms of a bond; its terms include the coupon rate, the period until maturity, and whether the bond comes with any special features like convertibility or whether it is callable. A covenant within an indenture states what actions the issuer and the bondholder may or may not take in certain situations. Covenants (and indentures generally) exist to reduce the risk to all parties to a bond.

covenant

A clause in a loan agreement written to protect the lender's claim by keeping the borrower's financial position approximately the same as it was at the time the loan agreement was made. Essentially, covenants spell out what the borrower may do and must do in order to satisfy the terms of the loan. For example, the borrower may be prohibited from issuing more debt by using certain assets as collateral. Likewise, the borrower may be required to issue reports to bondholders on certain dates. Also called protective covenant, restrictive covenant. See also negative covenant, positive covenant.
Case Study In February 2002 Qwest Communications issued a warning that the company was in danger of violating a bank loan covenant by the end of June. A major slump in the telecom business combined with heavy indebtedness caused concern that the firm's debt would exceed the specified maximum of 3.75 earnings before interest, taxes, depreciation, and amortization. A month later the company announced that in return for agreeing to use $608 million from a $1.5 billion bond issue to reduce bank debt, the bankers agreed to a concession that raised the covenant maximum to 4.25 until the end of September, and 4.00 during the following six months. The covenant had been included as part of the original bank loan agreement in order to help insure that Qwest could continue to meet its existing obligations before taking on additional debt.

covenant

a written agreement by a person to pay a given sum of money to some other person or organization for a specified period of time. Where a covenant arrangement allows a donor relief from income tax on any sums paid over, the covenant provides a tax-efficient means of making financial provision for a relative or charity.

covenant

a specific condition in a legal agreement or CONTRACT. For instance, a formal agreement between a COMMERCIAL BANK and a JOINT-STOCK COMPANY to which it is loaning money might contain a covenant stipulating a limit on dividend distributions from profits.

covenant

An agreement. For example,one can make a “covenant not to compete”a provision of a business sale,or one can write a restrictive covenant regarding the use of real property into the real estate records,which binds all owners whether it is contained in their specific deed or not.

References in periodicals archive ?
Scholars have relied on a variety of theory-specific ideas regarding contractual and covenantal relating.
The orientation of covenantal forgiveness is outward rather than inward.
This intertextual analysis of the present text shows that in Hosea 14:2-8 the Lord calls upon Israel to reestablish the covenantal relationship.
The Hebrew Bible, particularly its covenantal narratives such as those of Adam, Noah, and Moses, demonstrates the covenant ethical ethos of deep care for the natural environment.
But come Nathan and Elijah to magnify what might seem as a misdemeanor into a major transgression of the covenantal paradigm and a radical turning away from God.
But in a covenantal frame of reference grounded in God's abundance, others are seen to be brothers and sisters whose life is in a community of solidarity that shares the God-given resources for the well-being of 'all.
This kind of covenantal relationship was the foundation of oaths promised throughout history and within the classical professions.
The revolutionary potential of both the civic-republican and the covenantal kinds of nationalism were directed against the existing dispensation of hierarchical empires, kingdoms and churches in Europe--an order that was being fragmented with the rise of territorial monarchies.
The least we can offer in return is to deliver on the covenantal promise of a welcome return.
College-level and scholarly collections strong in Jewish ethics and morality issues must have The Jewish Idea of Ethics and Morality: A Covenantal Perspective: it focuses on the 'social covenant' which much of Jewish morality is based upon, drawing connections between justice and mercy and outlining the rule of basic ethical principles as it affects moral decision-making processes.
I will argue that citizen/ state relationships, just as some student/teacher relationships, are covenantal in nature and, as such, entail an increased moral burden on the part of the more powerful party.
Further, Werrell argues, Tyndale ultimately called for the restoration of the covenantal signs of the unreformed Church, to their original meaning, purified from the man-made additions and changes of the medieval which caused them to depart from their God-given purpose.