protective covenant

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Protective covenant

A part of an indenture or loan agreement that limits certain actions a company may take during the term of the loan to protect the lender's interests.

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.

protective covenant

See covenant.
References in periodicals archive ?
First, specifying and enforcing optimal protective covenants is costly, and the costs of some conceivable protections exceed the benefits.
Many accounting firms recognize the importance of including the correct and updated form of a protective covenant in their employment agreements.
Being wary of this wealth transfer to stockholders, bondholders seek to include protective covenants in bond indentures to deter stockholders and managers from implementing such an asset substitution.
Elucidating the salient features of the new initiatives he said that the government was endeavouring to enhance value of the government shareholding, maximization of profit, modernization and up gradation of SOEs, explore and create new assets, management and technology transfer benefits, increase investments in SOEs by identifying business benchmarks and outputs, remedial measures and generation of employment, exercise Public Private Partnership (PPP) as a policy to conduct privatization in the PPP mode for 26 percent of the equity stake along with transfer of management, set performance benchmarks, milestones and to safeguard Government interest through protective covenants.
I get involved on both sides of the issue, trying to enforce protective covenants or trying to protect companies hiring people.
Merlynn could create a private land trust with protective covenants, which would provide her with additional tax advantages.
There is still the issue of protective covenants to pursue, which we know matters.
The judges upheld a lower court ruling that Morrison had breached protective covenants when he set about widening the shared driveway.
Besides golf, Indiana's smaller-town golf communities are bringing with them development concepts more common in larger cities, For example, protective covenants are not an especially familiar concept in the Bedford area, but homes at Stone Crest enjoy such protections that dictate home sizes and set other ground rules for development and property upkeep.
Lankford has designed protective covenants containing phrases unusual for Colorado: "The intent of these covenants is to preserve Adobe Creek as an exclusive, high-quality residential and working forestry and agricultural area of lasting value.
Deed restrictions and protective covenants limit the amount of woods that can be cleared; all utility and cable lines are in place underground, and the roads have been finished in natural stone aggregate, to create a unique country retreat.
Page 213 and 214 of Book 18854 of the Official Records at the Los Angeles county Hall of Records reproduce a notarized document extending the various protective covenants on Reagan property to the adjacent land, Lots 3 through 8, which were still held by the U.

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