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 ?
HOMEOWNERS should be aware that if they are intending to carry out external alterations to their property, such as extensions and conservatories, consent may be needed under the terms of the title to their property due to restrictive covenants imposed upon the land.
Restrictive covenants are one of the extremely valuable tools that allow remediators and redevelopers to bring contaminated property back to productive use.
Buyers are bound by any restrictive covenants on property they buy so it is essential they are able to comply with them.
The restrictive covenant must be clear in its restrictions.
Perhaps the most important test is whether a restrictive covenant protects an employer's legitimate interest, and that is why broad covenants are not enforceable.
In a February 10 letter, TEI expressed concerns about proposed amendments to the Canadian Income Tax Act to revise the tax treatment of restrictive covenants.
The employment agreements contained post-employment restrictive covenants that prohibited Dr.
There are ways round restrictive covenants depending on the nature of the restrictive covenant and the proposed used of the land.
Contrary to popular belief, restrictive covenants are indeed enforceable, although courts will scrutinize them carefully.
An application has now been lodged with the council to have the restrictive covenant on the property removed.
The trial court concluded the liquidated damages provision was an invalid penalty and instructed a jury to determine whether the terms of the restrictive covenant were reasonable, whether Christian had breached the agreement and, if so, what damages flowed from this breach.
It does this by prohibiting the hiring of certain physicians, by prohibiting the enforcement of restrictions on certain physicians' discretion to end their employment with SMHS, by limiting SMHS's right to impose restrictive covenants on certain currently employed physicians who cease their employment with SMHS, and by prohibiting SMHS from restricting the access or admitting privileges of certain qualified physicians.

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