Covenant: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Martin ODonovan (Add ref to Treasurer article) |
||
| Line 1: | Line 1: | ||
1. A formal legal agreement to take, or not to take, certain actions. | 1. A formal legal agreement to take, or not to take, certain actions. | ||
2. In loan documentation, a promise given by the borrower to take, or not to take, relevant actions. For example, a ''financial covenant'' to maintain a minimum ratio of net worth to debt. | 2. In loan documentation, a promise given by the borrower to take, or not to take, relevant actions.<ref>http://www.treasurers.org/node/8842</ref> For example, a ''financial covenant'' to maintain a minimum ratio of net worth to debt. | ||
3. In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund. | 3. In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund. | ||
| Line 17: | Line 17: | ||
* [[Restrictive covenant]] | * [[Restrictive covenant]] | ||
* [[Waiver]] | * [[Waiver]] | ||
==References== | |||
<references /> | |||
Revision as of 14:16, 12 July 2013
1. A formal legal agreement to take, or not to take, certain actions.
2. In loan documentation, a promise given by the borrower to take, or not to take, relevant actions.[1] For example, a financial covenant to maintain a minimum ratio of net worth to debt.
3. In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund.
See also
- Accounting exposure
- Asset cover
- Event of default
- Financial covenant
- Incurrence covenant
- Interest cover
- Loan agreement
- Maintenance covenant
- Net worth
- Restrictive covenant
- Waiver
