This form is a Release and Cancellation of Trust Agreement / Trust Indenture. All liens and encumberances created thereby are certified to be satisfied and released. Adapt to fit your circumstances.
Indenture With Covenants In Cook
Category:
State:
Multi-State
County:
Cook
Control #:
US-00195
Format:
Word;
Rich Text
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FAQ
To come under the bond of the covenant means also to come under the discipline of the covenant; for they that are in gracious covenant with God will find that he dealeth with them as with sons, and, inasmuch as he loves them, they shall know the truth of that word,— “As many as I love I rebuke and chasten.” “If they ...
All bond covenants are part of a bond's legal documentation and are part of corporate bonds and government bonds. A bond's indenture is the portion that contains the covenants, both positive and negative, and is enforceable throughout the entire life of the bond until maturity.
In the bond market, a covenant will usually be a “financial covenant” which specifies that, for example, the issuer will maintain an interest coverage ratio over a certain level or a leverage ratio (debt/equity) under a specific level. These ratios are meant to constrain the issuer to financial prudence.
Individual items are known as covenants. However, the entire set of covenants is collectively known as an indenture. An indenture is a specialized form of agreement between the issuer and the investors. This agreement clearly outlines the rights and duties of every party involved in the transaction.
A covenant is a promise to take an action (an affirmative covenant) or to refrain from taking an action (a negative covenant). Indentures contain a variety of covenants from the issuer to the trustee on behalf of the bondholders.
Examples of Covenants include the Marriage Covenant, which involves promises of fidelity and commitment; the Land Covenant, which involves promises of protection and preservation; the Blood Covenant, which involves promises of loyalty and brotherhood; the Religious Covenant, which involves promises of faithfulness and ...
Examples of affirmative covenants include requirements to maintain adequate levels of insurance, requirements to furnish audited financial statements to the lender, compliance with applicable laws, and maintenance of proper accounting books and credit rating, if applicable.
The Indenture pledges certain revenues as security for repayment of the Bonds. The Trustee agrees to act on behalf of the holders of the Bonds and to represent their interests.
An indenture is a particular formal contract or deed made between two or more parties. Beginning in medieval England, an indenture can be defined as a specific agreement within a contract noted with a specific duration or significance.
Positive, or affirmative, covenants require issuers to remain in compliance with the agreement by meeting specific requirements and completing certain actions. These covenants include carrying insurance policies, maintaining certain performance standards, and providing financial statements.