It makes sense to a lawyer, but is it really the best way to organize the various promises in a […] that dividends will not exceed 60% of earnings. Revsine - Chapter 07 #80 81. A servitude is a general term for nonpossessory legal rights in another person’s land. These may include: ... Insuring assets adequately is a positive covenant, while options A and C are examples of negative covenants. For example, the restrictive covenant may include leases in a debt-limit calculation, or it may consider capital leases as an expense. Another common type of affirmative action program is to change the way the company recruits new hires. A negative covenant for a senior bondholder is the constraint on: A. ... Quizlet Live. It contrasts with a negative covenant, which prevents the issuer from taking the enumerated actions. 80. Affirmative action is intended to ensure that no qualified candidate of any group is excluded from the pool of applicants being considered. source: VIacom’s Affirmative Action Statement page. Examples: 1) A, who owned Blackacre and Whiteacre, covenanted with B, the grantee of Whiteacre, to keep the building on Blackacre in good repair. Affirmative easements, however, are in some sense the opposites of affirmative covenants. fixed charge ratio above a certain level. Affirmative Action Example Cases. Affirmative covenants essentially require the issuer to adhere to certain terms. Which one of the following is not a broad function served by debt covenants? A lender may be protected from deterioration of the borrower's creditworthiness if the commercial lending agreement requires the borrower to maintain a: Limits on the borrower's total indebtedness. B. Menu. For example, a company seeking to hire more women might send representatives to a job fair at an all-female college, or might send announcements of new job openings to a woman's organization. Which of the following is an example of an affirmative covenant A Restriction from ACC 205 at Defence Authority Degree College b. prevented from issuing excessive additional debt. “Affirmative action” in the US is conceptually somewhat similar to the reservation system in India, but with a major difference: there are no quotas in the US. Viacom Affirmative Action Statement. 5 Examples of Affirmative Action Statements. to insure and perform periodic maintenance on financed assets. C. Restriction on corporate restructurings that may materially affect the company. Providing periodic, audited financial statements. 2. Dictionary ! O Borrower May Not Merge With Another Company. Which of the following is an example of an affirmative covenant? O Borrower Must Maintain Insurance On The Collateral. Affirmative action is a policy in which an individual's color, race, sex, religion or national origin are taken into account to increase opportunities provided to … For example, a positive covenant may require an issuer to maintain enough liquid assets to cover the principal of the bond. An example of an affirmative statement is answering a question with the word “yes.” adjective. Complying with laws. An affirmative sentence, by contrast, is a statement that affirms rather than negates a proposition. D. Restricts the payment of cash dividends. The land that is subject to an easement is called the servient tenement or servient estate; the owner may be called the servient tenant.. Insurance Cannot Be Terminated 1. 1. For example, a restrictive covenant may prevent an issuer from issuing more debt until the bond matures.More commonly, a restrictive covenant limits the dividends an issuer may pay to shareholders so as to reduce the risk to the bond. No New Or Additional Debt Issuance Is Allowed 1. A. Need for periodic maintenance on real assets, if they are used as collateral. These covenants require a party to do something, are administrative in nature and do not result in additional costs. Limits on the borrower's total indebtedness. B . The Disadvantages of Affirmative Action. Affirmative action refers to a set of procedures implemented for the purpose of eliminating discrimination in educational and employment opportunities. (i.e., an article devoted to affirmative covenants and an article devoted to negative covenants). Why Does Negative Covenant Matter? Housing covenants are agreements in the deed of a property that restricts the owner from doing certain things with the property. For example, a company seeking to hire more women might send representatives to a job fair at an all-female college, or might send announcements of new job openings to a woman's organization. Goals are simply placement objectives that UA works toward by making good faith efforts to achieve broader representation in job groups where there is underutilization of females and/or minorities. As a result, it is very important that borrowers scrutinize covenants before borrowing. Another example of an affirmative restrictive covenant would be to require _____ violate public policy, are unreasonable, discriminate by race, etc courts may not enforce restrictive covenants if they __________ A bond covenant that forbids the issuer from taking certain actions. Affirmative Loan Covenant. 0. Which of the following is not an example of an affirmative covenant? B. O Borrower May Not Sell Fixed Assets Without Approval. Amounting to positive discrimination, the policy creates favor toward members of disadvantaged groups believed to have suffered discrimination in society. Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. An example of an affirmative covenant is the requirement: that dividends will not exceed 60% of earnings. As a result, it is very important that borrowers scrutinize covenants before borrowing. Restricted payments. An example of an affirmative covenant that would run with the land is one that requires all homes on the land to be at least a specified square footage. Limiting new business ventures. prohibited from entering into mergers. iv. For example, a restrictive covenant may prevent an issuer from issuing more debt until the bond matures.More commonly, a restrictive covenant limits the dividends an issuer may pay to shareholders so as to reduce the risk to the bond. √ Fast and Easy to use. Affirmative Loan Covenants Examples Include: Requirement to pay all business and employment-related taxes Requirement to maintain current financial records and to deliver to the lender for review certain types of reports such as a Certified Public Accountant’s Compiled, Reviewed or Audited financial statement each year. Meaning and examples for 'affirmative covenant' in Spanish-English dictionary. Violating a covenant can trigger a technical default. Affirmative is defined as something that confirms the truth. Affirmative is defined as something that confirms the truth. n. A covenant in which one party agrees to do something. Ring in the new year with a Britannica Membership, https://www.britannica.com/topic/affirmative-covenant. They do not materially limit the issuer’s freedom while executing day-to-day business operations. Affirmative and Negative Covenants. Further Promotes Racism and Prejudice By giving some groups of people more “rights” and protections than others, you are still promoting the separation and racism that you are trying to eradicate. Translation for 'affirmative covenant' in the free English-Russian dictionary and many other Russian translations. Limits the use of the loan to an agreed-upon purpose. As part of this, you publish what’s called an affirmative action statement (or “affirmative action policy statement”) Below are 5 samples of affirmative action statements. An example of a universal negative claim would be "No parrots are cats" as it completely excludes the category of parrots from the category... See full answer below. Dictionary ! For example, a bond covenant that provides that the issuer will maintain adequate levels of insurance or deliver audited financial statements is an affirmative covenant. Which statement best describes stock options? Dictionary ... An example of an affirmative action is nodding your head in agreement with a friend's statement. An example of an affirmative covenant is an agreement between a mortgage lender and a borrower, requiring the latter to maintain the collateral used for the loan until the loan is fully paid up. I No Dividends Are Permitted 11. The diagram below depicts "All Sepes are Kosraen" Universal Affirmative Non-Kosraen Sepes | Kosraen Sepes | Kosraens (not named Sepe) Universal Affirmative. C. The borrower shall prepare financial statements in accordance with GAAP. An affirmative covenant is a promise by the holder of the burdened to do something, like pay a subdivision exaction. A loan covenant is an agreement or stipulation laid down in loan contracts, particularly contracts with enterprises, under which the borrower pledges either to take certain action (an affirmative covenant), or to refrain from taking certain action (a negative covenant); this is consequently part of the terms and conditions of the loan. An affirmative loan covenant is used to remind the borrower they should be doing certain activities to maintain the financial health and well-being of the business. O Borrower may not merge with another company. Define the following and give an example of each: a. Allowing the lender to inspect business assets and business contracts. Which of the following is an example of an affirmative debt covenant? For example, the covenant may include leases in the debt calculation, or it may consider capital leases as an expense. Menu. B. Many loan agreements have financial covenants that rely on: Which of the following situations does not lead to default of a loan contract? The owner of the easement may be called the dominant tenant. Affirmative Covenant A type of promise or contract which requires a party to do something. Question 2. 1. In a bond issue, an affirmative covenant protects the interests of the issuer, as well as that of the bondholder. An affirmative covenant, also referred to as a positive covenant, is a promise that requires a party to adhere to specific terms of the agreement. In the event of a default, lenders may do all of the following except: many loan agreements have financial covenants that rely on the accounting rules in place when the loan is first granted. Negative Covenant: A negative covenant is a bond covenant preventing certain activities, unless agreed to by the bondholders . In loan covenants, there are three commonly known types of agreements: affirmative loan covenants, negative loan covenants, and financial loan covenants. Affirmative Covenant: “House must be maintained in X style” a. The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 0. √ Over 1,500,000 translations. More commonly, a positive covenant requires the issuer to have a certain amount of insurance or submit to periodic audits. Restriction on the amount of dividends paid. Affirmative covenants generally would not include which of the following stipulations? For example, the negative covenant may include leases in a debt-limit calculation, or it may consider capital leases as an expense. Question: Which Of The Following Is An Example Of An Affirmative Covenant? Referred to as “Restrictive Covenants” 1. Debt covenants usually preclude the borrower from being a merger target. You might also check out SHRM’s “Affirmative Action: … Negative covenants. A. Be on the lookout for your Britannica newsletter to get trusted stories delivered right to your inbox. take immediate full control of the creditor. For example, a positive covenant may require an issuer to maintain enough liquid assets to cover the principal of the bond. Show transcribed image text. Examples of affirmative or positive covenants are very basic - meet financial obligations, pay taxes, and maintain positive cash flow. Each Borrower Party covenants to the Agent and each Lender that so long as any of the Obligations remain outstanding or this Agreement is in effect: 7.1.Taxes and Other Obligations. They include affirmative covenants, which require the landowner to make payments, provide services, or render some other performance, and negative covenants, which require the landowner to refrain from doing something. is an example of an affirmative covenant. It is the opposite of a negative covenant, which requires a party to avoid doing something. Examples of negative statements include: "Rabbits don't fly" and "People don't float." Affirmative (or Positive) Covenant. align managers' incentives with the objectives of shareholders. In using financial statements to monitor compliance with debt covenants: Covenants that place direct restrictions on managerial decisions are called: Which of the following is not an example of an affirmative covenant? a. 2) Affirmative Covenants For the burden of an affirmative covenant to touch and concern the land, the covenant must require the holder of the servient estate to do something, increasing her obligations in connection with enjoyment of the land. Affirmative Loan Covenant. c. Restrictive covenants Which of the following is an example of an affirmative covenant? However, in breach of this covenant, the borrower will be in default of his/her obligations. Affirmative covenants are things that the small business or borrower must do while it is repaying its business loan. An example of the first is a covenant by one man that he will rob another or a covenant by a merchant or tradesman that he will not follow his occupation or calling. Negative Covenant: A negative covenant is a bond covenant preventing certain activities, unless agreed to by the bondholders . Negative covenants that restrict the uses of a parcel of the land are called restrictive covenants. Rather, they are used to align the interests of the principal and agent, as well as solve agency problems between the management (borrower) and debt holders (lenders).Debt covenant implications for the lender and the borrower: The Company reaffirms its belief and commitment in equal employment opportunity for all employees and applicants for employment in all terms This, if it be unlimited, is absolutely void, but if the covenant be that he shall not pursue his business in … Translation for 'Affirmative Covenant' in the free German-English dictionary and many other English translations. A bond covenant that requires the issuer to take certain actions. Easements, along with covenants, are known as servitudes. O Borrower may not sell fixed assets without approval. 1. Define Affirmative Covenant. Dictionary ... An example of an affirmative action is nodding your head in agreement with a friend's statement. Affirmative covenants generally would NOT include which of the following stipulations? Information about a company's executive compensation practices can be found in a company's: Most executive compensation plans link bonus awards to one or more: Stock options give the holder the right to purchase shares at a stated price. Debt covenants are not used to place a burden on the borrower. A bond covenant that forbids the issuer from taking certain actions. That categorical proposition happens to be true. Examples of affirmative and negative covenants that aim to protect a creditor’s position from corporate actions that may worsen their position are the following: 1. An affirmative obligation does not directly restrict your use of your land, but obligates you, based solely on the fact that you own that particular tract of land, to take some action. Which of the following is not an example of a negative covenant provision? A categorical proposition can be false, such as "All planets are flat." Which of the following is not an example of a negative covenant provision? Which of the following is an example of affirmative action? Liquidity Ratio Must Be 1.5x (times) The Loan Amount I Only Il And Iy Ll Only And III Next Previous Why Does a Restrictive Covenant Matter? Which one of the following is not a broad function served by debt covenants? The borrower will use the proceeds of the loan in accordance with the loan purposes set forth in the loan agreement. As a result, it is very important that borrowers scrutinize covenants before borrowing. The issuance of a more senior loan An affirmative covenant is a type of promise or contract that requires a party adhere to certain terms. 1. to … C . Diagrams. Translation for 'affirmative covenant' in the free English-German dictionary and many other German translations. Affirmative covenants essentially require the issuer to adhere to certain terms. Negative covenants that restrict the uses of a parcel of the land are called restrictive covenants. Spread the love Some of you need to have affirmative action plans, according to the Executive Order 11246 Title 41 Affirmative Action Requirements. The US system seeks to provide justice to groups that faced discrimination historically, by ensuring fair representation for them in education and jobs. Affirmative Covenant translation in German-English dictionary. cash collateral account. These are basically limitations on how a company’s cash can be used. Which of the following is an example of a negative covenant? By using our services, you agree to our use of cookies. Question: Which Of The Following Is(are) An Example(s) Of An Affirmative Covenant(s) With Respect To Debt Or Loan Compliance Requirements? Cookies help us deliver our services. Negative covenants and negative easements are thus quite similar in their content. … Other articles where Affirmative covenant is discussed: servitude: They include affirmative covenants, which require the landowner to make payments, provide services, or render some other performance, and negative covenants, which require the landowner to refrain from doing something. What is an Affirmative Covenant? The goal of everyone being equal is lost with affirmative action because the minority groups now have special privileges. Such policies include racial or gender quotas adopted for admission to colleges across the country. The borrower is: A . Affirmative or Positive Loan Covenants . Affirmative means a positive answer. Quizlet Learn. √ 100% FREE. O Borrower Must Avoid Changes In Ownership. Amid the controversy of Affirmative Action, some institutions have implemented policies bringing on even greater debate. From reader Zack Miller, of Sacramento, California: What are your thoughts on organizing credit agreements based on affirmative and negative covenants? 0. Affirmative action creates a fixed mindset that because one is born into a racial or ethnic group, one is entitled to privileges such as lowered criteria. The lender has the right to inspect business assets and business contract It contrasts with a negative covenant, which prevents the issuer from taking the enumerated actions. C. Limits the use of the loan to an agreed-upon purpose. letter of credit. An affirmative word or sentence is usually contrasted with a negative sentence, which commonly includes the negative particle "not." Some covenants prevented owners from selling to individuals of a specific race or ethnic group. The most common example of an affirmative obligation is the duty to pay assessments. Affirmative covenants. By signing up for this email, you are agreeing to news, offers, and information from Encyclopaedia Britannica. An example would be "All cats are animals." AACSB: Reflective Thinking AICPA FN: Risk Analysis Blooms: Comprehension Difficulty: Hard Learning Objective: 07-02 How and why accounting numbers are used in debt agreements; in compensation contracts; and for regulatory purposes. Negative Covenant: “House cannot be maintained in X style” a. The 5 samples of AA statements below are culled from a combination of corporate, non-profit and academic organizations. See the answer. adjective. More commonly, a positive covenant requires the issuer to have a certain amount of insurance or submit to periodic audits. The borrower will at all times maintain a ratio of current assets to current liabilities that is greater than 2.0 to 1.0. Require landowner (burdened estate) to do some act or pay money (Like a Condo fee) 2. Another common type of affirmative action program is to change the way the company recruits new hires. In an acquisition agreement, for example, the body of the contract is generally organized in this sequence: deal terms, statements of fact (traditionally known as representations and warranties; see 3.374), obligations, conditions to closing, termination, indemnification, and miscellaneous provisions. This problem has been solved! O Borrower must maintain insurance on the collateral. adjective. Limits on capital expenditures. Typical…. Affirmative means a positive answer. covenant, affirmative. means any affirmative or similar covenant made by the Borrowers set forth in this Agreement or in any other Loan Document. Affirmative loan covenants remind the borrowers that they should perform expressed activities to maintain a healthy operation of their businesses, which will in return create a stable financial performance. Select one: A. O Borrower must avoid changes in ownership. In the banking industry, the ratio of investor capital/gross assets, as defined by RAP, is the.