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.
(34) See Barrickman, 2015 WL 2357179 at *1 ("Restriction #6 in the Green Creek Estates' Declaration of Protective Covenants and Restrictions prohibits 'commercial use' of property.").
Recommend and after County approval, record protective covenants on the property to ensure appropriate development standards are envisioned and adhered to.
O'Toole promotes private zoning and protective covenants as a policy fix to the abuse of public zoning.
The problem, they say, is Stockholm is renting his home out for short-term rentals, which violates the protective covenants that were established Nov.
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.

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