Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

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Covenant

A legally-binding clause that requires an investment to meet certain conditions, e.g. a loan may have covenants that require the borrower to have certain Debt Yield, Debt Service Coverage Ratio or Loan-to-Value ratios. If the condition is breached, default remedies are specified.
 

Source: NCREIF | Date: 02 September 2025 | ID: D1024 | Version: 1