LOAN COVENANT Definition

Bookmark and Share

LOAN COVENANT is a legally enforceable promise or restriction in a mortgage. For example, the borrower may covenant to keep the property in good repair and adequately insured against fire and other casualties. A breach of covenant in a mortgage usually creates a default, defined by the mortgage, and can be the basis for foreclosure.

Learn new Accounting Terms

NEGATIVE WORKING CAPITAL is when current liabilities exceed current assets.

ACB normally refers to adjusted cost base.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.