Define: Incurrence Covenant

How is Incurrence Covenant defined in a legal contract?

• Incurrence Covenant means a commitment made by any borrower to abide by one or more financial conditions only upon the performance of certain actions by the borrower, such as issuing debt, paying dividends, purchasing shares, merging, acquiring or divesting. Seen in 75 SEC filings
• Incurrence Covenant means a commitment made by any borrower to follow one or more financial conditions, including any commitment related to borrowing base, valuation of assets, or any requirement based on assets only upon the happening of certain borrower's actions such as debt issuance, dividend payment, share purchase, merger, acquisition, or divestiture. Seen in 69 SEC filings
• Incurrence Covenant means a commitment made by an obligor linked to a bank loan to adhere to one or more financial conditions only when specific actions of the borrower occur, including but not limited to, a debt issuance, dividend payment, a share purchase, merger, acquisition or divestiture. Seen in 27 SEC filings
• Incurrence Covenant means a commitment made by the borrower to adhere to one or more financial conditions during each reporting period, regardless of any specified action taken. Seen in 5 SEC filings
• Incurrence Covenant means a commitment made by the borrower of a Senior Secured Loan or Second Lien Loan to fulfill one or more financial conditions only upon occurrence of specific events or actions of the borrower, including but not limited to, a debt issuance, dividend payment, share purchase, merger, or an acquisition or divestiture. Seen in 3 SEC filings

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of incurrence covenant' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

Incurrence Covenant means a borrower's commitment to satisfy certain financial requirements only when completing specific actions.

Relevant Contract Types

• Loan Agreement
• Credit Agreement
• Mergers and Acquisitions Agreement
• Joint Venture Agreement

Relevant Circumstances

• Debt issuance
• Dividend payment
• Share purchase
• Mergers
• Acquisitions
• Divestitures

Relevant Sectors

• Financial Services
• Accounting
• Real Estate
• Private Equity
• Investment Banking

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Genie Definition 2

Incurrence Covenant means during each reporting period, the borrower's duty to fulfill various financial conditions, regardless of any specified action.

Relevant Contract Types

• Bi-lateral Loan Agreement
• Syndicated Loan Agreement

Relevant Circumstances

• Periodic financial reporting periods
• Continuous business operations

Relevant Sectors

• Manufacturing
• Services
• Information Technology
• Consumer Goods
• Healthcare

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