Debt limitation

(redirected from Debt Limitations)

Debt limitation

A bond covenant that restricts the firm's ability to incur additional indebtedness in some way.

Debt Limitation

A negative covenant in a bond indenture limiting the issuer's ability to acquire more debt before the bond matures. Debt limitation may take a variety of forms. For example, the indenture may restrict the debt service coverage ratio, meaning that the company can acquire theoretically unlimited debt provided it increases it income to such a level that it can service the debt. On the other hand, debt limitation may set a maximum dollar amount of debt that the issuer may acquire during the life of the bond, or even may prevent the issuer from becoming any more indebted at all. These latter debt limitations are more likely when the issuer is not on sound financial footing and possibly is issuing junk bonds. A debt limitation should not be confused with a debt limit, which is similar but is a legal requirement on a government.
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Despite frequently changing the definition of public debt, the government has gone past its debt limitations, set out under the Fiscal Responsibility and Debt Limitation Act, said Senate Standing Committee on Finance Chairman Senator Saleem Mandviwalla.
She expressed concern that the public debt was not consistent with federal debt limitations which is over and above that.
The finance minister said public debt, which was 64.7pc of GDP in 2013, rose to 70pc by the end of previous government's tenure, deploring that it was not consistent with federal debt limitations.
The proposed merger remains subject to customary conditions to closing, including but not limited to regulatory approvals inclusive of the effectiveness of the S-4 Registration Statement, debt limitations of Napo, absence of any material adverse change in the business, results of operations or condition (financial or otherwise) of either party and stockholder approval from each party.
He said that as per the Fiscal Responsibility and Debt Limitations Act, the fiscal deficit of the federal government would be brought down to 4pc of GDP by June 2020.
(2) For the first measure, similar to Hackbart and Leighland (1990), the authors constructed a six-category scale to measure state debt limitations. The least restrictive limitations received a score of one, and meant that only a simple majority was needed for debt approval (MD, NH, TN and VT).
The taxpayers argued that the debt limitations of Sec.
Courts in the following states have considered the issue and concluded that TIF debt is subject to constitutional debt limitations: Arizona, Iowa, Kentucky, Oklahoma, South Dakota, West Virginia, and Wisconsin.
The cost and fair market value for determining the home acquisition and home equity debt limitations must be divided between the business and the qualified home portions.
* Legal debt limitations, or limitations established by policy
State and local government borrowing has also grown, but it is widely believed that debt limitations, separated capital budgets, and norms of state budget balance have limited the growth in state debt.
Further, mutual investment goals should be stated in the agreement, especially regarding capital requirements, debt limitations, re-investment criteria and holding period.