Loan covenant definition

Loan covenant means a condition in an agreement relating to a loan or bond issue that requires the borrower to fulfil certain conditions or which forbids the borrower from undertaking certain actions, or which possibly restricts certain activities to circumstances when other conditions are met. Violation of a covenant may result in a default on the loan being declared, penalties being applied, or the loan being recalled;
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Loan covenant means a condition in an agreement relating to a loan or bond issue that requires the borrower to fulfill certain conditions or which forbids the borrower from undertaking certain actions, or which possibly restricts certain activities to
Sample 1
Loan covenant means a condition in an agreement relating to a loan or bond issue that requires the borrower to fulfill certain conditions or which forbids the borrower from undertaking certain actions, or which possibly restricts certain activities to circumstances when other conditions are met. Violation of a covenant may result in a default on the loan being declared, penalties being applied, or loan being recalled; “long term debt” means debt repayable by the Town over a period exceeding one(1) year;
Sample 1

Examples of Loan covenant in a sentence

  • Loan covenant compliance is closely monitored by the treasury department.

  • Loan covenant of a debt service coverage ratio is included in the term loan.

  • In order for RMUs to be able to plan its activities, the Loan covenant is proposed that the ARS/MMU need to be informed by the Government of its RMU’s budget on a rolling 2 year basis.

  • In the event that we fail to comply with any New Term Loan covenant or any New ABL Facility covenant, we would be considered in default, which would enable applicable lenders to accelerate the repayment of amounts outstanding, require the cash collateralization of letters of credit (in the case of the New ABL Facility) and exercise remedies with respect to collateral and we would need to seek an amendment or waiver from the applicable lender groups.

  • In connection with the performance of its other duties and obligations under this Agreement, including without limitation, processing Borrower requests and monitoring and enforcing Mortgage Loan covenant compliance, the Servicer shall be permitted to rely on any certification, information and/or reports furnished by the Borrower or the Manager without any obligation to investigate the accuracy or completeness of any information set forth therein, and shall have no liability with respect thereto.

  • Loan covenant As of 31 December 2021, the Stapled Group has complied with the debt covenants (except for two debt covenant ratios for which waivers were secured).

  • Loan covenant theory (signaling arguments) sug- gests that spreads will be lower if loan covenants are stricter.

  • Loan covenant As of 30 June 2021, the Stapled Group has complied with the debt covenants with exception of two debt covenant ratios where the Stapled Group has received waiver to defer.

  • The latest tariff increase, benefitting from the new decentralization law, went beyond the Loan covenant requirements, and was carried out through a transparent and participatory mechanism.

  • Loan covenant terms related to this package were modified during the reporting period to stipulate that regardless of the earnings reported for 2009, the company is allowed to distribute a maximum of EUR 3 million in dividends in 2010.

Related to Loan covenant

  • Loan Agreement shall have the meaning assigned to such term in the recitals.

  • Financing Agreement means any lease purchase agreement, installment sale agreement, loan agreement, line of credit or other agreement of the department or, with the approval of the director, and any agency, to finance the improvement, use or acquisition of real or personal property that is or will be owned or operated by one or more agencies of the State, the department or any agency, or to refinance previously executed financing agreements including certificates of participation relating thereto. The School shall not act as a guarantor of any such financing agreement.