Bond covenant

A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions. The New York Times Financial Glossary

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bond covenant UK US noun [C] LAW, FINANCE
a written promise in a bond document stating that the bond issuer (= person borrowing money by selling bonds) will or will not do something, for example borrow more than a particular amount of money: »

Bond covenants exist to protect bondholders.


Financial and business terms. 2012.

Look at other dictionaries:

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