protective covenant


Also found in: Financial.

protective covenant

1. An agreement, in writing, which restricts the use of real property.
2. A restriction, which affects the use of real property, that appears in a legal document conveying title to the property.
References in periodicals archive ?
Put simply, if a protective covenant or security interest is efficient in reducing agency costs when capital is scarce, it ought to be efficient when capital is abundant.
In fact, growing numbers of accounting firms are making certain that they have the right form of non-compete and protective covenant agreements in place with their employees, managers, and partners in order to ensure that accountants cannot leave the firm and take their books of business and client relations to a competitor.
Being wary of this possible loss in bond values, bondholders often require that a protective covenant be included in the bond indenture explicitly restricting the sale and lease-back transaction on particular assets of the borrowing firm.
In this book, Emily Bingham traces in fascinating detail how this family adopted what she terms "a protective covenant fusing bourgeois domesticity, intellectual cultivation, and religious liberalism" (p.
Fortunately, Dean Kamphoefner's heir had wisely donated a protective covenant on the house to Preservation North Carolina, giving this private preservation society final approval in perpetuity on any changes to the property.
Although the Hunter opinion never discussed Shelley, the court's holding is exactly in-line with Shelley by holding "that neither the recording of the protective covenant in the public records, nor the possible enforcement of the covenant in the courts of the state, constitutes sufficient 'state action' to render the parties' purely private contracts relating to the ownership of real property unconstitutional." (9) As discussed, the Shelley Court stated that private restrictions (abhorrent as some may be) alone were not enough to implicate constitutional scrutiny.
Elucidated the salient features of the new privatization policy, Syed Naveed Qamar said that now privatization would be conducted in Public Private Partnership (PPP)/ Joint venture mode for 26 % of the equity stake along with transfer of management while safeguarding government interest through protective covenant. The Government would continue to ensure that divestment does not result in alienation of national assets and reduction in quality production and service the detriment of its people, he added.
Upon full prepayment of the class A2 and A4 notes, the terms and conditions of the class A notes will change slightly, with a loosening of some of the protective covenants, notably with the class A leverage covenant increasing to 5.75x.
Malloy, Boston [divider] Road assessments Matthew Costa, the developer of Meadowview Heights, a residential development in Provincetown, signed a declaration of protective covenants for the property and registered it with the Barnstable County Registry of Deeds.
Focus: Protective Covenants Statutory Interpretation The Members of Sky Park Industrial Center (the Members) appeal a circuit court order entered on March 14, 2017.
The firms are likely to include other protective covenants (in addition to ERC and Call provision) to counter the agency cost of debt (Billet et al.
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