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restrictive covenant
(redirected from Negative covenant)

   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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Forbearance agreements also contain affirmative and negative covenants, along with certain conditions-most often that the borrower will seek professional financial planning help or sell his assets to repay the debt.
This new credit facility, which matures in February 2012, contains customary affirmative and negative covenants, including, among other things, covenants requiring Command to maintain certain financial ratios.
There are no negative covenants, restrictions on future fundings, penalties or liquidated damages in the agreement.
 
 
 
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