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.
Illustrated Dictionary of Architecture Copyright © 2012, 2002, 1998 by The McGraw-Hill Companies, Inc. All rights reserved

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.
McGraw-Hill Dictionary of Architecture and Construction. Copyright © 2003 by McGraw-Hill Companies, Inc.
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.
Negative Covenants, Representations, and Warranties G.
The facility comes with some financial covenants, negative covenants and restrictions.
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.
The bank may not react well to a PMSI being granted, which will take priority over the bank in the collateral financed, and the PMSI may breach negative covenants in the security whereby the graining of further security is prohibited without the bank's consent.
Obligations paid out of the CBRF have no priority of payment or ranking, and there are no negative covenants insulating the Tower 4 annual debt service payments.
Further, the transaction documents contain customary affirmative and negative covenants, financial covenants, representations and warranties and events of default, which are subject to various exceptions and qualifications.