Restrictive covenant

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Related to Negative Covenants: Affirmative Covenants

Restrictive covenant

A requirement to adhere to a specific restriction on the use or development of real property.

restrictive covenant

An agreement between two or more individuals, incorporated within a deed which stipulates how land may be used. The constraints may include: the specific use to which a property can be put, the location and dimensions of fences, the setback of buildings from the street, the size of yards, the type of architecture, the cost of the house, etc. Racial and religious restrictions on inhabitants are legally unenforceable.
References in periodicals archive ?
Negative covenants are usually limited but may state that the buyer does not want the seller to adopt any more plans or make any amendments to the existing plans before the transaction is complete.
In addition, they will seek positive and negative covenants from the managers to ensure they have control over the more important decisions of the company.
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.
5% that will be paid quarterly and the agreement contains customary affirmative and negative covenants of the company such as covenants not to incur certain debt that is not subordinated and not to make optional payments on its debt (other than on the notes) or amend material debt in a manner that is adverse to the holders.
Nevertheless, under the negative covenants of the transaction, UniTapah is not allowed to amend the CA without the prior written consent of the Trustee, save for any amendments required by the GoM or due to any legal requirements.