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.
Global Definitions Database
Covenant
Source: NCREIF | Date: 02 September 2025 | ID: D1024 | Version: 1