PIOB and Springing covenant: Difference between pages

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imported>Doug Williamson
(Create page. Sources: linked pages and The Treasurer online November 2017 https://www.treasurers.org/node/341963)
 
imported>Doug Williamson
(Define 'lite' covenants.)
 
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''International Organization of Securities Commissions (IOSCO)''.
''Long term funding''.
 
A covenant in a loan agreement which becomes effective on the occurrence of a certain event in the future. Used to enable loan agreements to have fewer and less onerous ('lite') covenants, typically to conform to other loans of the same borrower.
 
A common springing event is the level of utilisation of a loan facility at which time covenants such as ICR ([[interest cover]] ratio) and [[gearing]] come into effect.
 
Springing covenants are a form of [[contingent covenant]].


The PIOB is the Public Interest Oversight Board of IOSCO.




== See also ==
== See also ==
* [[Financial Stability Board]]
*[[Incurrence covenant]]
* [[International Organization of Securities Commissions]]
*[[Maintenance covenant]]
* [[PIOB]]
 
[[Category:Long_term_funding]]

Revision as of 15:15, 1 August 2015

Long term funding.

A covenant in a loan agreement which becomes effective on the occurrence of a certain event in the future. Used to enable loan agreements to have fewer and less onerous ('lite') covenants, typically to conform to other loans of the same borrower.

A common springing event is the level of utilisation of a loan facility at which time covenants such as ICR (interest cover ratio) and gearing come into effect.

Springing covenants are a form of contingent covenant.


See also