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 ?
One of the most important considerations when drafting restrictive covenants is deciding the length of the covenant.
If a homeowner's future use of a property will cause a breach of the restrictive covenants imposed upon the land, such as the construction of an extension, it is safest to assume that the restrictive covenants are still enforceable.
In order to understand restrictive covenants in the context of environmental and land use law, it is important to know the background and history of the use of "risk-based corrective action" (RBCA).
There are a number of ways potentially to overcome problematic restrictive covenants but it is important to seek expert legal advice as early as possible.
In the result, the whole restrictive covenant was struck out as unenforceable because of the ambiguity created by the generic word "Metropolitan.
Perhaps the most important test is whether a restrictive covenant protects an employer's legitimate interest, and that is why broad covenants are not enforceable.
Members of the legal profession, of course, see more than their fair share of restrictive covenants.
This demonstrates that the underlying restrictive covenant is itself fair and reasonable.
Contrary to popular belief, restrictive covenants are indeed enforceable, although courts will scrutinize them carefully.
An application has now been lodged with the council to have the restrictive covenant on the property removed.
The Fourth Departments cryptic language concluded, "because the restrictive covenant in this agreement is over broad, it is unreasonable and unenforceable.
which had sought to enforce a partnership restrictive covenant against a departing partner, Paul Christian.

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