Bond covenant


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Bond covenant

A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions.

Bond Covenant

An agreement between the issuer and holder of a bond, requiring or forbidding certain actions of the issuer. Positive covenants require actions while negative covenants forbid them. The exact terms of a bond covenant must be written in the bond indenture.
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If they know in advance that once firms get funds from them, firms will take more risky projects to reduce their wealth, they will certainly place some terms or constraints in the bond covenant or in the contract for financial managers to prevent this wealth transfer from happening.
Section Bond Covenant for Mitigating Underinvestment derives the required property insurance indemnity schedule that should be specified in a bond covenant to mitigate the underinvestment problem with risky asset reconstitution.
* The appointment of a newly structured entity--the "supertrustee"--with the duty and power to actively monitor, renegotiate, and enforce bond covenants, and with access to confidential company information, thereby overcoming the collective action problem.
Grant Preliminary Approval Consolidated 4.13 2.85 of Financing Footnote Disclosure 5.25 2.05 U = 23, p = 0.191 Require Bond Insurance Consolidated 3.50 2.45 Footnote Disclosure 2.88 2.47 U = 25, p = 0.2525 Cost of Bond Insurance Too High Consolidated 2.00 1.41 Footnote Disclosure 2.63 1.92 U = 24, p = 0.347 Require Bank Letter of Credit Consolidated 2.13 1.55 Footnote Disclosure 2.56 2.13 U = 351 p = 0.482 Bond Covenants Needed Consolidated 6.00 1.41 Footnote Disclosure 6.11 1.27 U = 35.5, p = 0.482
5 In some instances, the bond covenant provided for a change in conversion terms over time, e.g., 20 shares until January 1, 1985 and 30 thereafter.
Tenders are invited for most qualified consulting firm to assist the city in achieving sustainable water and wastewater rate structures that: adequately fund operations, debt service, and capital improvements; meet debt service ratios and bond covenant requirements; and ensure that water and sewer fund is operating on a self-sustaining basis over the next 20 years.
They are particularly interested in a utility's adherence to bond covenant requirements and financial performance.
Therefore, it is feasible to include a bond covenant requiring insurance such that the bond issue raises enough to cover the insurance premium as well as the other monies necessary.
Deposit and investment act may be affected by local ordinance, written policy, bond covenant or management practice.
As a result of missing its bond covenant, CARTI was forced to hire a management consulting company, which finished its job several months ago.
Violating the bond covenant would be a technical default on the bonds, and Windstream could be on the hook to repay bondholders immediately.
Violating the bond covenant is another entry in the roster of recent bad news for the only Arkansas hospital that had more than $1 billion in patient revenue each year between 2004 and 2007.