Restrictive covenant

(redirected from Negative covenant)
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Related to Negative covenant: Negative pledge, 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 ?
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.
The new facility amends and restates the prior revolving line of credit dated 26 June 2009 by extending its maturity through 4 January 2017 from 25 June 2013, cutting the borrowing rate and commitment fees and modifying some affirmative and negative covenants, the company said in a statement.
The facility includes its affirmative and negative covenants.