Covenant
A binding promise in a contract, loan or lease. Breaching a covenant can trigger remedies or enforcement rights.
Related terms
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Cross-default
A clause allowing a default under one agreement to trigger a default under another related agreement.
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Secured creditor
A creditor with enforceable security over an asset, giving it rights against that asset if the debt is not paid.
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Legal charge
A form of security over property that gives a lender enforceable rights if the secured debt is not paid.
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