Conventional year and Covenant: Difference between pages
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1. | |||
A formal legal agreement to take, or not to take, certain actions. | |||
2. | |||
In loan documentation, a promise given by the borrower to take, or not to take, specified actions relevant to the borrower's creditworthiness. | |||
For example, a ''financial covenant'' to maintain a minimum ratio of net worth to debt. | |||
3. | |||
In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund. | |||
== See also == | == See also == | ||
* [[ | * [[Accounting exposure]] | ||
* [[ | * [[Asset cover]] | ||
* [[ | * [[Breach of covenant]] | ||
* [[ | * [[Clause]] | ||
* [[ | * [[Compliance]] | ||
* [[Interest]] | * [[Condition]] | ||
* [[ | * [[Contingent covenant]] | ||
* [[ | * [[Covenant trigger]] | ||
* [[Covenant-lite]] | |||
* [[Credit risk]] | |||
* [[Event of default]] | |||
* [[Financial covenant]] | |||
* [[Generally accepted accounting principles]] | |||
* [[Grace period]] | |||
* [[Headroom]] | |||
* [[Incurrence covenant]] | |||
* [[Interest cover]] | |||
* [[Loan agreement]] | |||
* [[Maintenance covenant]] | |||
* [[Net worth]] | |||
* [[Non-financial covenant]] | |||
* [[Representations]] | |||
* [[Restrictive covenant]] | |||
* [[Term]] | |||
* [[Trigger event]] | |||
* [[Waiver]] | |||
* [[Warranty]] | |||
==Other links== | |||
[http://www.treasurers.org/node/8842 Treasury Essentials: Covenants, The Treasurer, March 2013] | |||
[[Category:Long_term_funding]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Treasury_operations_infrastructure]] | |||
Revision as of 19:58, 11 May 2020
1.
A formal legal agreement to take, or not to take, certain actions.
2.
In loan documentation, a promise given by the borrower to take, or not to take, specified actions relevant to the borrower's creditworthiness.
For example, a financial covenant to maintain a minimum ratio of net worth to debt.
3.
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
- Clause
- Compliance
- Condition
- Contingent covenant
- Covenant trigger
- Covenant-lite
- Credit risk
- Event of default
- Financial covenant
- Generally accepted accounting principles
- Grace period
- Headroom
- Incurrence covenant
- Interest cover
- Loan agreement
- Maintenance covenant
- Net worth
- Non-financial covenant
- Representations
- Restrictive covenant
- Term
- Trigger event
- Waiver
- Warranty
