Covenant: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Categorise page and correct typo.) |
imported>Doug Williamson (Change to Wiki numbering.) |
||
| Line 1: | Line 1: | ||
#A formal legal agreement to take, or not to take, certain actions. | |||
#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. | |||
#In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund. | |||
Revision as of 16:15, 4 December 2013
- A formal legal agreement to take, or not to take, certain actions.
- 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.
- 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
References
Treasury Essentials: Covenants, The Treasurer, March 2013
