Covenant: Difference between revisions
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imported>Doug Williamson (Link with Contingent covenant page.) |
imported>Doug Williamson (Link with Generally accepted accounting principles page.) |
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* [[Event of default]] | * [[Event of default]] | ||
* [[Financial covenant]] | * [[Financial covenant]] | ||
* [[Generally accepted accounting principles]] | |||
* [[Incurrence covenant]] | * [[Incurrence covenant]] | ||
* [[Interest cover]] | * [[Interest cover]] | ||
Revision as of 16:10, 17 January 2016
- 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, specified actions relevant to the borrower's creditworthiness.[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
- Breach of covenant
- Compliance
- Contingent covenant
- Credit risk
- Event of default
- Financial covenant
- Generally accepted accounting principles
- Incurrence covenant
- Interest cover
- Loan agreement
- Maintenance covenant
- MCT
- Net worth
- Non-financial covenant
- Restrictive covenant
- Waiver
References
Treasury Essentials: Covenants, The Treasurer, March 2013
