Restrictive covenants
Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividend. |
Similar financial terms
Restrictive practiceA general term for anything done by a company, or companies, to inhibit fair competition. Generally against the law.
Covenants
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).
