positive covenant

Positive covenant (of a bond)

A bond covenant that specifies certain actions the firm must take. Also called an affirmative covenant.

Positive Covenant

A bond covenant that requires the issuer to take certain actions. For example, a positive covenant may require an issuer to maintain enough liquid assets to cover the principal of the bond. More commonly, a positive covenant requires the issuer to have a certain amount of insurance or submit to periodic audits. It contrasts with a negative covenant, which prevents the issuer from taking the enumerated actions. It is also called an affirmative covenant.

positive covenant

A clause in a loan agreement that requires a specified action by the borrower. For example, a positive covenant may mandate that the borrower maintain a specific level of working capital or issue periodic reports to creditors. Compare negative covenant.
References in periodicals archive ?
An example of a so-called positive covenant might be an obligation to maintain the boundaries.
There is a positive covenant to operate greyhound racing at the venue so I would also ask all interested parties to write expressing their wishes that it should continue.
The Notes include negative covenants, positive covenants and conversion right adjustment provisions that are typical for transactions of this nature.
There are always concerns that successive occupiers of premises may not be covered by negative and more likely, positive covenants on the land, such as obligations to make payments.
In addition, the loan covenants included positive covenants for the borrowers to apply for planning consent for the development of Thistle Lancaster Gate, Thistle Kensington Park, and Thistle Kensington Palace for residential purposes within a specified period of their purchase.
The Notes will include negative covenants, positive covenants and conversion right adjustment provisions that are typical for transactions of this nature.
Moreover the lease may contain obligations known as positive covenants requiring the leaseholder to spend money on general maintenance, repairs etc.