Contingent covenant: Difference between revisions
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imported>Doug Williamson (Amend to 'according to'.) |
imported>Doug Williamson (Align with qualifications material.) |
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''Loan documentation.'' | ''Loan documentation.'' | ||
A contingent covenant is a covenant which | A contingent covenant is a covenant in borrowings documentation which is contingent on a particular event or measure. | ||
A common example is a contingent covenant linked with the borrower's credit rating. | |||
The existence of such covenants is very significant for borrowers which are close to the boundary where the covenant might be triggered, for example following any further deterioration in the borrower's credit rating. | |||
== See also == | == See also == | ||
* [[Credit rating]] | |||
* [[Covenant]] | * [[Covenant]] | ||
* [[Maintenance covenant]] | * [[Maintenance covenant]] | ||
* [[Ratings trigger]] | |||
* [[Springing covenant]] | * [[Springing covenant]] | ||
Revision as of 15:09, 1 August 2015
Loan documentation.
A contingent covenant is a covenant in borrowings documentation which is contingent on a particular event or measure. A common example is a contingent covenant linked with the borrower's credit rating.
The existence of such covenants is very significant for borrowers which are close to the boundary where the covenant might be triggered, for example following any further deterioration in the borrower's credit rating.
