Covenant: Difference between revisions
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imported>Doug Williamson (Change to Wiki numbering.) |
imported>Doug Williamson (Link with Non-financial covenant page.) |
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* [[Maintenance covenant]] | * [[Maintenance covenant]] | ||
* [[Net worth]] | * [[Net worth]] | ||
* [[Non-financial covenant]] | |||
* [[Restrictive covenant]] | * [[Restrictive covenant]] | ||
* [[Waiver]] | * [[Waiver]] | ||
Revision as of 16:26, 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
- Non-financial covenant
- Restrictive covenant
- Waiver
References
Treasury Essentials: Covenants, The Treasurer, March 2013
