Springing covenant: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Baseby2@msn.com (Loan covenant which is conditional) |
imported>Baseby2@msn.com No edit summary |
||
| Line 1: | Line 1: | ||
Long Term Funding | |||
A covenant in a loan agreement which becomes effective on the occurrence of a certain event in the future. Used to enable loan agreements to have lite covenants, typically to conform to other loans of the same borrower. A common springing event is the level of utilisation of a loan facility at which time covenants such as ICR and gearing come into effect. | A covenant in a loan agreement which becomes effective on the occurrence of a certain event in the future. Used to enable loan agreements to have lite covenants, typically to conform to other loans of the same borrower. A common springing event is the level of utilisation of a loan facility at which time covenants such as ICR and gearing come into effect. | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Revision as of 12:57, 24 July 2015
Long Term Funding
A covenant in a loan agreement which becomes effective on the occurrence of a certain event in the future. Used to enable loan agreements to have lite covenants, typically to conform to other loans of the same borrower. A common springing event is the level of utilisation of a loan facility at which time covenants such as ICR and gearing come into effect.
