restrictive covenant

(redirected from Negative covenant)
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Related to Negative covenant: Negative pledge, 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
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014
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'At most, Clause 12.2.2 of the Omidyar PDR is in the nature of a negative covenant put into place to protect the interest of Omidyar, as investor.
SSPs will require a negative covenant from property owners not to take any actions that would obstruct sunlight.
In addition, the agreement HNB typically uses to document loans to consumer finance companies includes a negative covenant that the borrower will not engage in activities that would violate applicable law or regulation, including laws or regulations related to predatory lending.
In addition, the company also announced that it has entered into an amendment to the senior ABL facility, which eliminates, effective 29 August 2013, the company's negative covenant in Section 7.06 of the senior ABL facility that provides that the company will not, among other things, declare any cash dividend or repurchase any of its common stock, in each case prior to 12 October 2013.
A loan covenant is an agreement or stipulation laid down in loan contracts, particularly contracts with enterprises, under which the borrower pledges either to take certain action (an affirmative covenant), or to refrain from taking certain action (a negative covenant); this is consequently part of the terms and conditions of the loan.
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.