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restrictive covenant
(redirected from Negative Covenants)

   Also found in: Dictionary/thesaurus, Legal, Financial, Encyclopedia, Wikipedia 0.01 sec.
restrictive covenant (ristrik´tiv kuv´nnt),
n common clause found in a contract for the sale of a dental practice. The seller contracts that he or she will not practice dentistry within a certain time and area. A junior partner may be asked to sign such a covenant to guarantee that he or she will not compete with the partnership for a period after leaving the partnership. Also used in an employment situation.


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In addition, the Facility contains customary negative covenants applicable to the Company and its subsidiaries, including negative covenants that restrict the ability of such entities to, among other things, (i) incur additional indebtedness, (ii) allow certain liens to attach to such entities' assets, and (iii) pay dividends or make certain other restricted payments.
People think compliance is mostly financials compliance and a couple of very big negatives," says Jim Simpson, managing partner of Corporate Finance Solutions, citing negative covenants such as restrictions on asset sales or mergers.
The facility contains customary representations and warranties, and affirmative and negative covenants.
 
 
 
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