Conditions of compliance placed on an Issuer of debt for the life of the obligation, specifying that certain activities will or will not be carried out by the Borrower. Examples would include restricting future debt issuance and maintaining earnings above a certain multiple of the note’s debt service. Covenants are imposed by Lender on Borrowers as protection from the Borrowers defaulting on their obligations due to financial actions detrimental to themselves or the business. Pertains to debt offerings.
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by bsmith@carofin.com | Feb 22, 2019
