The financial definition for Bond covenant:
A contractual provision in a bond indenture. A positive covenant requires certain
actions, and a negative covenant
limits certain actions.
Affirmative covenantAffirmative covenant
A bond covenant that specifies
certain actions the firm must take.
Provisions in a bond indenture or preferred stock agreement that require the bond or preferred stock issuer to take certain specified actions (affirmative covenants) or to refrain from taking certain specified actions (negative covenants).
Negative covenantNegative covenant
A bond covenant that limits or prohibits certain actions unless the bondholders agree.
Further Suggestions Positive covenant (of a bond)
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