Breach of covenant
A failure to comply with a promise or condition in a loan, lease or other agreement, which may give the other party enforcement rights.
Related terms
-
Covenant
A binding promise in a contract, loan or lease. Breaching a covenant can trigger remedies or enforcement rights.
-
Loan covenant
A promise or financial condition in a loan agreement that the borrower must comply with during the life of the facility.
-
Event of default
An event defined in a finance agreement that gives the lender additional rights, such as demanding repayment or enforcing security.
What’s your next step?
Get in touch with us at Bell & Company today to see how we can help