ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Board of Directors Videos 111 videos
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What are Passive Investing and Passive Investors? Passive investing and passive investors are ones who opt to ride the market out over the long ter...
Finance: What is a debt covenant? 4 Views
Share It!
Description:
What is a debt covenant? Covenants are added clauses to a loan agreement that are dictated by the lender that the borrower has to agree to in order to close a loan transaction. Covenants can include, but are not limited to, items like requiring adequate insurance coverage, keeping debt ratios under a specific number, compliance with local zoning laws, and a host of other circumstances unique to the transaction that the lender may perceive as potentially detrimental to the borrower’s ability to service the loan.
What is a debt covenant? Covenants are added clauses to a loan agreement that are dictated by the lender that the borrower has to agree to in order to close a loan transaction. Covenants can include, but are not limited to, items like requiring adequate insurance coverage, keeping debt ratios under a specific number, compliance with local zoning laws, and a host of other circumstances unique to the transaction that the lender may perceive as potentially detrimental to the borrower’s ability to service the loan.
- Terms and Concepts / Regulations
- Social Studies / Finance
- Terms and Concepts / Wealth
- Terms and Concepts / Bonds
- Finance / Financial Responsibility
- Terms and Concepts / Investing
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Terms and Concepts / Board of Directors
- Terms and Concepts / Company Valuation
- Terms and Concepts / Stocks
- Terms and Concepts / Credit
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Terms and Concepts / Banking
- Terms and Concepts / Company Management
- Finance and Economics / Terms and Concepts
Related Videos
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...
How do credit card companies work? Credit card companies are, in a way, lenders. They give consumers a rectangular piece of plastic that allows the...
How do some accountants “cook the books”? Cooking the books refers to accountants making company’s financials look much better than they are....
How do you become incorporated? Go to Legal Zoom. Pay $150, file with the state of Delaware or whoever each year. Pay another $150. Most file as LL...
How do you get a startup funded? Depends if we're talking about a tech startup, or a non-tech startup. If you've got a promising, budding tech comp...