Covenant
A promise in an indenture, or any other formal debt agreement, that certain activities will or will not be carried out.

Investopedia Says:
The purpose of a covenant is to give the lender more security. Covenants can cover everything from minimum dividend payments to levels that must be maintained in working capital.

Related Terms:
Debt Limitation
Indenture
IOU
Liquidity
Negative Covenant
Staple Financing

• Long Term
• Long-Term Assets
• Long-Term Capital Gain Or Loss
• Long-Term Capital Management (LTCM)
• Long-Term Capital Management (LTCM)
• Long-Term Care (LTC) Insurance
• Long-Term Care (LTC) Insurance
• Long-Term Debt
• Long-Term Debt/Capitalization
• Long-Term Equity Anticipation Securities (LEAPS)
• Long-Term Equity Anticipation Securities (LEAPS)
• Long-Term Growth
• Long-Term Incentive Plan (LTIP)
• Long-Term Incentive Plan (LTIP)
• Long-Term Investments
• Long-Term Liabilities
• Long The Basis
• Look-Ahead Bias
• Lookback Option
• Look Thru
• Loonie
• Loose Credit
• Losing Your Shirt
• Loss Carryback
• Loss Carryforward