💴 Project finance covenants
A project finance covenant is a legal agreement between the project sponsor and the lender that outlines the rules and regulations that the sponsor must follow in order to ensure that the project is completed successfully. The covenant typically covers aspects such as the use of project funds, the project timeline, and the sponsor's obligations to the lender.
Note: Working on a legal issue? Try our AI Legal Assistant
Associated business activities
Operational covenants
Operational covenants are important because they help protect lenders, ensure borrowers are using loan proceeds as intended, and help borrowers meet financial and operational goals. In the event of a default, operational covenants can help protect lenders by providing them with certain rights and remedies.
Try using Genie's Free AI Legal Assistant
Generate quality, formatted contracts with AI
Can’t find the right template? Create the bespoke agreement in minutes by conversing with our AI and tailoring to your needs
Let our Legal AI make edits for you
Ask Genie to edit your document in the same way you’d ask a paralegal. Genie makes track changes, and explains its thinking just like a junior lawyer would.
AI review
Can’t find the right template? Create the bespoke agreement in minutes by conversing with our AI and tailoring to your needs
