restrictive covenant

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Related to Negative Covenants: Affirmative Covenants

restrictive covenant

n
(Law) law a covenant imposing a restriction on the use of land for the purpose of preserving the enjoyment or value of adjoining land
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Both loans have a three-year maturity, bear interest at LIBOR +800bps and each contain customary representations, warranties and affirmative and negative covenants.
The revolving credit facility generally requires REX to comply with various affirmative and negative covenants, including a limit on the leverage ratio (as defined in the credit agreement) of REX at 5.0x.
Confirmation of equity injection and negative covenants on distributions will continue to be included in loan documents.
Nevertheless, negative covenants of the transaction prohibit UniTapah from amending the CA without the prior written consent of the Trustee.
The Property Regulations allow the creation of both positive and negative covenants.
This is to align "the negative covenants in section 7.2 (c) and (k) of the trust agreements of the said bonds with section 7.2 (c) of the trust agreement dated March 14, 2014 covering SMB's Series G and H bonds."
Retirement plan-related contract provisions include sellers' representations, affirmative covenants, negative covenants and, perhaps, indemnification-meaning the seller promises to pay for any loss or damages if a problem is found with a benefit plan.
Negative covenants prohibit the borrower from doing something, such as borrowing more money or selling the business without payoff of the loan.