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 ?
It had to pay Downing the cash because it owns the Port of Liverpool Building which benefits from restricted covenants that dictate how high neighbouring buildings can be built.
Both Cllr Dowd and Mr Pugh believe the land should have been retendered once it was agreed to remove the restricted covenants.
Council officers will be put under the spotlight to assess whether they were right to advise councillors to remove restricted covenants from the deal.

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