Limitation on subsidiary borrowing

Similar financial terms

Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into sale and lease-back transactions.

Limitation on merger, consolidation, or sale
A bond covenant that restricts in some way a firm's ability to merge or consolidate with another firm.

Limitation on liens
A bond covenant that restricts in some way a firm's ability to grant liens on its assets.

Limitation on asset dispositions
A bond covenant that restricts in some way a firm's ability to sell major assets.

Debt outstanding subject to limitation
Obligations incurred by the Treasury subject to the statutory limit set by Congress. Until World War 1, a specific amount of debt was authorized for each separate security issue. Beginning with the Second Liberty Loan Act of 1917, the nature of the limitation was modified until, in 1941, it developed into an overall limit on the outstanding Federal debt. The statuatory limit may change from year to year.

Statute of Limitations
The deadline after which a party claiming to be injured by the settlor may (should) no longer file an action to recover his or her damages.

Subsidiary
With the regards to the euromarkets, a subsidiary is foreign-based affiliate that is a separately incorporated entity under the host country's law.

Offshore finance subsidiary
A wholly owned affiliate incorporated overseas, usually in a tax haven country, whose function is to issue securities abroad for use in either the parent's domestic or its foreign business.