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 is worth briefly mentioning that, prior to the enactment of the restrictive covenant statute, the term "goodwill" appears to have been used inconsistently.
Finally, employers must tailor restrictive covenants specifically to employees in line with their role, experience, seniority and interaction with clients.
In a world of highly competitive companies vying for a limited pool of highly qualified job candidates, it is almost assured that companies will resort to legal enforcement of restrictive covenants or other potential misappropriation theories in an effort to retain what is identified or perceived as a proprietary competitive advantage.
"Restrictive Covenants and the Practice of Medicine." Code of Medical Ethics of the American Medical Association, 2012-2013 edition, p 325.
The buyer and his agent subsequently filed a complaint with HUD, alleging the restrictive covenant.
You should not attempt to contact any person likely to have the benefit of a restrictive covenant without having first sought the advice of your solicitor.
For this reason, post-employment restrictive covenant cases often burn a short fuse before detonating and releasing a new status quo--the product of a preliminary legal ruling followed by pragmatic (if acrimonious) negotiation.
Campaigner Dean Johnson said he was concerned the issue of the "release of restrictive covenant" at Ingleborough had come up now.
The manager can communicate to the separated employee during an exit interview the importance of not violating any restrictive covenant or confidentiality agreement.
A District Court in Arizona held that the restrictive covenant a physician (employee) entered into with a medical group (employer) was too broad and against public policy, because (1) the covenant not to compete for three years is unreasonable, (2) the prohibited geographic area encompassed 235 square miles and was thus unreasonable, and (3) the covenant did not provide an exception for emergency care.
The written employment contract for certain key workers, therefore, may contain a restrictive covenant, also referred to as a non-competition agreement, in which the employee has agreed not to work in the same industry within a specified territory for a period of time after leaving.
THE controversy over the building of 20 luxury flats in Newmarket's Bury Road has taken a significant twist with the news that the properties being developed by Highland Homes may be subject to a restrictive covenant that limits building on the land to one detached or two semi-detached homes.

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