TERMinology

Our glossary of private capital terms

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Affirmative Covenant

Covenant in a loan or bond agreement mandating certain actions which the borrower or issuer must do during the life of the facility.

Examples of Affirmative Covenants: Paying interest, maintaining certain levels of business insurance, preparing and providing lenders periodic financial reporting, maintaining a credit rating, comply with applicable laws.

Also known as Positive Covenants.