covenant

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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 ?
Although the covenantal moral concept of deep care basically agrees with Gilligan's different voice making a tie between relationship and responsibility, the concept of deep care is distinguished from Gilligan's relational care in that deep care is interested in the moral directive to tie between the "relationless relation" and the "responsibility beyond responsibility.
The solution is that the contract that facilitates market exchange and indirect cooperation presupposes covenantal elements of sharing and love to be truly human.
When discussing the phenomenon of prophecy and the prophets attempt to heal the rift caused by the people s or ruler s deviation from the covenantal paradigm, we must take into account the differences of the prophet's role in the northern kingdom of Israel as opposed to the Davidic monarchy in Jerusalem.
A second major change from the original text is the omission of the covenantal relationship of the physician to his mentor and the mentor's family.
In broad outline, this is a move from autonomy to covenantal existence, from anxiety to divine abundance, and from acquisitive greed to neighborly generosity.
His desire is that they might change their ways; that they might be restored to the covenantal relationship with Him; that they might walk in the ways of justice.
My concluding remarks focus upon three approaches the government and citizens could utilize to attempt to reaffirm this important covenantal relationship.
Nonetheless, our fragmented, anxious times cry out for the justice, security, and compassion of covenantal living.
Perhaps there is a covenantal reason for our dispersion beyond the traditional view of exile as punishment.
Understanding the place of rights, a communitarian can provide a more robust democracy of "a covenantal people, committed to the ideals and shared understandings that make self-government possible, rewarding, and serf-sustaining" (p.
If, however, the fundamental social compact is a covenant, by extension, we must incorporate covenantal values and principles within our caring and our ethical analyses.
At the Hilyard Community Center on Tuesday, Bill Northrup said he objects to the registry idea because "it gives city recognition to lower levels of commitment than those found in the covenantal contract of marriage.