Skip to main content

Covenant Restricting Borrower Dividends and Payments on Stock

Book Publication Date: Nov 2014
Description: General business covenants place restrictions on corporate structure and business activities of an obligor. This sample clause restricts a borrower, but not its subsidiaries, from declaring dividends and other distributions.
Type: Contract Clauses
PLI Item #: 128787
Practice Area: Banking and finance, Corporate finance

Keywords: "general business covenants"; "dividend restriction"; "payments on stock"; borrower; "restricted payment"; "subordinated debt"; distributions

Thank you for exploring PLI PLUS.
The content on this page is only available to subscribers.

To learn more about PLI PLUS subscriptions
please click on the link below or contact us at