Covenant

Covenant,

Definition of Covenant:

  1. Binding promise explicitly or implicitly stipulated in a deed or contract (a loan agreement, for example), by a covenantee (a lender, for example), which the covenanter (a borrower, for example) must agree to (otherwise there is no agreement or deal). Once agreed to, the covenant is usually enforceable even if it is unwarranted and/or is unsupported by a consideration. A covenant need not be explicit if its implication is necessary to carry out the intention of the explicit covenant(s). Covenants can cover virtually anything; in a loan agreement, for example, covenants can restrict size of a firms total debt, salaries of managers, and dividends to shareholders. A covenant may be (1) Positive, when it forces an action, (2) Negative, when it restrains or prevents, (3) Independent, when applicable on its own, or (4) Dependent, when its application requires a specific condition to occur.

  2. In legal and financial terminology, a covenant is a promise in an indenture, or any other formal debt agreement, that certain activities will or will not be carried out or that certain thresholds will be met. Covenants in finance most often relate to terms in a financial contract, such as a loan document or bond issue stating the limits at which the borrower can further lend.

  3. An agreement.

  4. Agree by lease, deed, or other legal contract.

  5. Written, solemn, and binding agreement.

  6. Covenants are most often represented in terms of financial ratios that must be maintained, such as a maximum debt-to-asset ratio or other such ratios. Covenants can cover everything from minimum dividend payments to levels that must be maintained in working capital to key employees remaining with the firm.

Synonyms of Covenant

Accord, Agree, Agree on, Agree to, Agree with, Agreement, Arrangement, Bargain, Bargain for, Binding agreement, Bond, Cartel, Collective agreement, Come around to, Come to terms, Compact, Concur, Consortium, Contract, Convention, Covenant of salt, Deal, Dicker, Do a deal, Employment contract, Engage, Formal agreement, Get together, Ironclad agreement, Legal agreement, Legal contract, Make a deal, Mutual agreement, Pact, Paction, Pledge, Plight, Promise, Protocol, Shake hands on, Shake on it, Stipulate, Stipulation, Strike a bargain, Swear, Transaction, Understanding, Undertake, Union contract, Valid contract, Vow, Wage contract, Undertake, Give an undertaking, Pledge, Promise, Agree, Contract, Vow, Guarantee, Warrant, Commit oneself, Bind oneself, Give ones word, Enter into an agreement, Engage, Contract, Compact, Treaty, Pact, Accord, Deal, Bargain, Settlement, Concordat, Protocol, Entente, Agreement, Arrangement, Understanding, Pledge, Promise, Bond, Indenture, Guarantee, Warrant

How to use Covenant in a sentence?

  1. Dr. Sheldon Cooper on TV�s Situation Comedy series, The Big Bang Theory, often references his covenant or roommate agreement to Leonard and his relationship covenant to Amy.
  2. The covenant makes a direct statement that all improvements to building and land must be unanimously approved by the board of directors and cannot exceed the time period given to complete the project.
  3. Covenants exist in financial contracts, such as bond issues, that set out certain activities that will or will not be carried out.
  4. Covenants are legally binding clauses, and if breached will trigger compensatory or other legal action.
  5. Covenants that allow certain activities are called affirmative, while those that restrict are classified as negative covenants.
  6. The man had to sign a covenant at the bank which stated that he was responsible to pay back the cost of the property when he purchased his house.
  7. The landlord covenants to repair the property.
  8. There was a covenant between them that her name was never to be mentioned.

Meaning of Covenant & Covenant Definition

Covenant,

What is The Definition of Covenant?

  1. In legal and financial terms, a contract is a promise in a trust or other formal loan agreement that some activities will or will not be carried out or certain limits will be met. Financial liability is primarily related to the terms of financial agreements, such as:

    • Financial agreements include agreements, such as: B-bond issues that specify certain activities that may or may not be carried out.
    • Liability is a legally binding clause and in case of violation, compensation or other action is taken.
    • Alliances that allow specific activities are rated positive, while alliances that limit them are rated negative.

  2. Definition of Covenant: Written commitment, sometimes as part of an agreement, whether or not to take special action.

Meanings of Covenant

  1. A contract.

  2. Receive by lease, process or other legally binding agreement.

Sentences of Covenant

  1. There is an alliance between them whose names will never be mentioned

  2. The owner agrees to improve the property

Synonyms of Covenant

give one's word

Covenant,

What is The Definition of Covenant?

  1. Meaning of Covenant: In legal and financial terms, an agreement is a promise in a trust or other formal loan agreement that certain activities will or will not take place or will reach certain limits. Financial obligations are primarily related to the terms of financial agreements, such as:

    • Financial contracts are agreements, such as: B. Bond issues that determine certain activities that will be carried out or not.
    • Commitment is a legal provision and in case of non-compliance no compensatory action or other legal action will be taken.
    • The alliance that allows certain activities is called positive, while the limits that limit it are called negative alliance.

  2. Covenant definition is: A written commitment, sometimes as part of an agreement, whether or not to take special action.

Meanings of Covenant

  1. Agree by legally valid lease, deed or other agreement.

Synonyms of Covenant

plight (oneself), commitment

Covenant,

What is The Definition of Covenant?

Covenant means, Eric is currently an independent licensed life, health, property and accident insurance broker. He has held public and private accounting positions for over 13 years and as an insurance agent for over four years. Her experience in tax accounting provides a solid foundation for her current business.

  • Financial agreements contain agreements, such as: B. Bond issues that determine certain activities that will or will not be done.
  • The pledge is a legal provision and in case of non-compliance no compensation or legal action will be taken.
  • Alliances that allow certain activities are called positive alliances, while alliances that limit them are called negative alliances.

A written commitment, sometimes as part of an agreement, to decide whether or not to take special action.

Sentences of Covenant

  1. There is an alliance between them that will never be mentioned.