Covenant

Business / Loan / Covenant: An agreement or promise to do or not to do a particular thing; to enter into a formal agreement; a promise incidental to a deed or contract. The following are functional objectives guiding most covenants: full disclosure of information, preservation of net worth, maintenance of asset quality, maintenance of adequate cash flow, control of growth, control of management, assurance of legal existence and concept of going concern, provision for lender profit or program goals.
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Covenant Against Encumbrances

Business / Real Estate / Covenant Against Encumbrances: The grantor warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed. Encumbrances generally include mortgages, mechanics liens and easements. If t MORE

Negative Covenant

Business / Finance / Negative Covenant: A bond covenant that limits or prohibits certain actions unless the bondholders agree. MORE

Affirmative Covenant

Business / Finance / Affirmative Covenant: A bond covenant that specifies certain actions the firm must take. MORE