Definition of "Covenant"

  1. Entering into a contractual commitment such as signing a three year leas.
  2. Agreeing to perform or not to perform some act. An example is a tenant agreeing not to sublease the apartment.
  3. Stipulating something such as a tenant agreeing not have a dog into apartment.
  4. Implied or express commitment in connection with a contract or deed. An example is a restriction placed on the borrower in a loan agreement by the bank to protect its interest. Another example is requiring a real estate developer to maintain a minimum working capital and carry a minimum amount of insurance.

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