an example of an affirmative covenant is quizlet

Affirmative and Negative Covenants. Spread the love Some of you need to have affirmative action plans, according to the Executive Order 11246 Title 41 Affirmative Action Requirements. 5 Examples of Affirmative Action Statements. This problem has been solved! 1. Limits on the borrower's total indebtedness. adjective. B. Negative Covenant: A negative covenant is a bond covenant preventing certain activities, unless agreed to by the bondholders . Insurance Cannot Be Terminated 1. O Borrower may not merge with another company. In loan covenants, there are three commonly known types of agreements: affirmative loan covenants, negative loan covenants, and financial loan covenants. Quizlet Learn. B . It contrasts with a negative covenant, which prevents the issuer from taking the enumerated actions. O Borrower must avoid changes in ownership. An affirmative sentence, by contrast, is a statement that affirms rather than negates a proposition. Another common type of affirmative action program is to change the way the company recruits new hires. Limits the use of the loan to an agreed-upon purpose. √ Fast and Easy to use. The Company reaffirms its belief and commitment in equal employment opportunity for all employees and applicants for employment in all terms A bond covenant that forbids the issuer from taking certain actions. The land that is subject to an easement is called the servient tenement or servient estate; the owner may be called the servient tenant.. Affirmative Loan Covenant. You might also check out SHRM’s “Affirmative Action: … Some covenants prevented owners from selling to individuals of a specific race or ethnic group. Examples of negative statements include: "Rabbits don't fly" and "People don't float." Affirmative easements, however, are in some sense the opposites of affirmative covenants. covenant, affirmative. A categorical proposition can be false, such as "All planets are flat." Affirmative covenants generally would not include which of the following stipulations? to insure and perform periodic maintenance on financed assets. Negative covenants that restrict the uses of a parcel of the land are called restrictive covenants. The owner of the easement may be called the dominant tenant. Amounting to positive discrimination, the policy creates favor toward members of disadvantaged groups believed to have suffered discrimination in society. 1. Which of the following is not an example of a negative covenant provision? Negative covenants that restrict the uses of a parcel of the land are called restrictive covenants. Affirmative loan covenants remind the borrowers that they should perform expressed activities to maintain a healthy operation of their businesses, which will in return create a stable financial performance. cash collateral account. More commonly, a positive covenant requires the issuer to have a certain amount of insurance or submit to periodic audits. Negative Covenant: “House cannot be maintained in X style” a. Providing periodic, audited financial statements. The diagram below depicts "All Sepes are Kosraen" Universal Affirmative Non-Kosraen Sepes | Kosraen Sepes | Kosraens (not named Sepe) Universal Affirmative. Affirmative covenants essentially require the issuer to adhere to certain terms. For example, the covenant may include leases in the debt calculation, or it may consider capital leases as an expense. These covenants require a party to do something, are administrative in nature and do not result in additional costs. A. Require landowner (burdened estate) to do some act or pay money (Like a Condo fee) 2. O Borrower may not sell fixed assets without approval. C. Limits the use of the loan to an agreed-upon purpose. An example would be "All cats are animals." Affirmative Loan Covenant. Affirmative is defined as something that confirms the truth. Dictionary ... An example of an affirmative action is nodding your head in agreement with a friend's statement. prohibited from entering into mergers. An example of a universal negative claim would be "No parrots are cats" as it completely excludes the category of parrots from the category... See full answer below. C . Which of the following is not an example of an affirmative covenant? Why Does a Restrictive Covenant Matter? Need for periodic maintenance on real assets, if they are used as collateral. Revsine - Chapter 07 #80 81. A. Viacom Affirmative Action Statement. C. The borrower shall prepare financial statements in accordance with GAAP. An example of an affirmative covenant is the requirement: that dividends will not exceed 60% of earnings. Select one: A. Referred to as “Restrictive Covenants” 1. Debt covenants usually preclude the borrower from being a merger target. Another common type of affirmative action program is to change the way the company recruits new hires. Affirmative means a positive answer. Examples of affirmative and negative covenants that aim to protect a creditor’s position from corporate actions that may worsen their position are the following: 1. Allowing the lender to inspect business assets and business contracts. Examples: 1) A, who owned Blackacre and Whiteacre, covenanted with B, the grantee of Whiteacre, to keep the building on Blackacre in good repair. Affirmative is defined as something that confirms the truth. Each Borrower Party covenants to the Agent and each Lender that so long as any of the Obligations remain outstanding or this Agreement is in effect: 7.1.Taxes and Other Obligations. An example of an affirmative statement is answering a question with the word “yes.” adjective. More commonly, a positive covenant requires the issuer to have a certain amount of insurance or submit to periodic audits. In the banking industry, the ratio of investor capital/gross assets, as defined by RAP, is the. An affirmative word or sentence is usually contrasted with a negative sentence, which commonly includes the negative particle "not." I No Dividends Are Permitted 11. The 5 samples of AA statements below are culled from a combination of corporate, non-profit and academic organizations. Limits on capital expenditures. Another example of an affirmative restrictive covenant would be to require _____ violate public policy, are unreasonable, discriminate by race, etc courts may not enforce restrictive covenants if they __________ 1. Define Affirmative Covenant. The US system seeks to provide justice to groups that faced discrimination historically, by ensuring fair representation for them in education and jobs. Which one of the following is not a broad function served by debt covenants? Housing covenants are agreements in the deed of a property that restricts the owner from doing certain things with the property. C. Restriction on corporate restructurings that may materially affect the company. Further Promotes Racism and Prejudice By giving some groups of people more “rights” and protections than others, you are still promoting the separation and racism that you are trying to eradicate. Question: Which Of The Following Is(are) An Example(s) Of An Affirmative Covenant(s) With Respect To Debt Or Loan Compliance Requirements? 1. An example of an affirmative covenant is an agreement between a mortgage lender and a borrower, requiring the latter to maintain the collateral used for the loan until the loan is fully paid up. Menu. Goals are simply placement objectives that UA works toward by making good faith efforts to achieve broader representation in job groups where there is underutilization of females and/or minorities. Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. Dictionary ! O Borrower May Not Sell Fixed Assets Without Approval. Affirmative or Positive Loan Covenants . Violating a covenant can trigger a technical default. Restricted payments. Affirmative covenants are things that the small business or borrower must do while it is repaying its business loan. Examples of affirmative or positive covenants are very basic - meet financial obligations, pay taxes, and maintain positive cash flow. O Borrower May Not Merge With Another Company. Diagrams. Cookies help us deliver our services. See the answer. They include affirmative covenants, which require the landowner to make payments, provide services, or render some other performance, and negative covenants, which require the landowner to refrain from doing something. For example, a positive covenant may require an issuer to maintain enough liquid assets to cover the principal of the bond. Translation for 'affirmative covenant' in the free English-Russian dictionary and many other Russian translations. — Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. letter of credit. Which of the following is an example of an affirmative covenant? For example, a company seeking to hire more women might send representatives to a job fair at an all-female college, or might send announcements of new job openings to a woman's organization. As a result, it is very important that borrowers scrutinize covenants before borrowing. As a result, it is very important that borrowers scrutinize covenants before borrowing. The lender has the right to inspect business assets and business contract Affirmative covenants generally would NOT include which of the following stipulations? is an example of an affirmative covenant. Dictionary ... An example of an affirmative action is nodding your head in agreement with a friend's statement. Affirmative action is intended to ensure that no qualified candidate of any group is excluded from the pool of applicants being considered. Menu. Meaning and examples for 'affirmative covenant' in Spanish-English dictionary. to … Negative covenants and negative easements are thus quite similar in their content. Typical…. The Essential Law Dictionary. take immediate full control of the creditor. In a bond issue, an affirmative covenant protects the interests of the issuer, as well as that of the bondholder. An example of the first is a covenant by one man that he will rob another or a covenant by a merchant or tradesman that he will not follow his occupation or calling. source: VIacom’s Affirmative Action Statement page. Easements, along with covenants, are known as servitudes. Ring in the new year with a Britannica Membership, https://www.britannica.com/topic/affirmative-covenant. The borrower will at all times maintain a ratio of current assets to current liabilities that is greater than 2.0 to 1.0. Limiting new business ventures. As a result, it is very important that borrowers scrutinize covenants before borrowing. For example, a bond covenant that provides that the issuer will maintain adequate levels of insurance or deliver audited financial statements is an affirmative covenant. Define the following and give an example of each: a. An affirmative obligation does not directly restrict your use of your land, but obligates you, based solely on the fact that you own that particular tract of land, to take some action. Be on the lookout for your Britannica newsletter to get trusted stories delivered right to your inbox. Affirmative action is a policy in which an individual's color, race, sex, religion or national origin are taken into account to increase opportunities provided to … By using our services, you agree to our use of cookies. Negative covenants. These may include: ... Insuring assets adequately is a positive covenant, while options A and C are examples of negative covenants. An affirmative covenant is a type of promise or contract that requires a party adhere to certain terms. align managers' incentives with the objectives of shareholders. In an acquisition agreement, for example, the body of the contract is generally organized in this sequence: deal terms, statements of fact (traditionally known as representations and warranties; see 3.374), obligations, conditions to closing, termination, indemnification, and miscellaneous provisions. That categorical proposition happens to be true. AACSB: Reflective Thinking AICPA FN: Risk Analysis Blooms: Comprehension Difficulty: Hard Learning Objective: 07-02 How and why accounting numbers are used in debt agreements; in compensation contracts; and for regulatory purposes. For example, a positive covenant may require an issuer to maintain enough liquid assets to cover the principal of the bond. Such policies include racial or gender quotas adopted for admission to colleges across the country. Question: Which Of The Following Is An Example Of An Affirmative Covenant? An example of an affirmative covenant that would run with the land is one that requires all homes on the land to be at least a specified square footage. 2) Affirmative Covenants For the burden of an affirmative covenant to touch and concern the land, the covenant must require the holder of the servient estate to do something, increasing her obligations in connection with enjoyment of the land. Affirmative Covenant translation in German-English dictionary. For example, a restrictive covenant may prevent an issuer from issuing more debt until the bond matures.More commonly, a restrictive covenant limits the dividends an issuer may pay to shareholders so as to reduce the risk to the bond. The most common example of an affirmative obligation is the duty to pay assessments. O Borrower Must Avoid Changes In Ownership. An affirmative loan covenant is used to remind the borrower they should be doing certain activities to maintain the financial health and well-being of the business. Question 2. Liquidity Ratio Must Be 1.5x (times) The Loan Amount I Only Il And Iy Ll Only And III Next Previous Amid the controversy of Affirmative Action, some institutions have implemented policies bringing on even greater debate. What is an Affirmative Covenant? Affirmative Covenant A type of promise or contract which requires a party to do something. n. A covenant in which one party agrees to do something. Affirmative action creates a fixed mindset that because one is born into a racial or ethnic group, one is entitled to privileges such as lowered criteria. O Borrower Must Maintain Insurance On The Collateral. An affirmative covenant is a promise by the holder of the burdened to do something, like pay a subdivision exaction. A loan covenant is an agreement or stipulation laid down in loan contracts, particularly contracts with enterprises, under which the borrower pledges either to take certain action (an affirmative covenant), or to refrain from taking certain action (a negative covenant); this is consequently part of the terms and conditions of the loan. Which one of the following is not a broad function served by debt covenants? From reader Zack Miller, of Sacramento, California: What are your thoughts on organizing credit agreements based on affirmative and negative covenants? It is the opposite of a negative covenant, which requires a party to avoid doing something. Which of the following is an example of affirmative action? They do not materially limit the issuer’s freedom while executing day-to-day business operations. D. Restricts the payment of cash dividends. A lender may be protected from deterioration of the borrower's creditworthiness if the commercial lending agreement requires the borrower to maintain a: Limits on the borrower's total indebtedness. √ Over 1,500,000 translations. The goal of everyone being equal is lost with affirmative action because the minority groups now have special privileges. Affirmative Action Example Cases. No New Or Additional Debt Issuance Is Allowed 1. c. Restrictive covenants Affirmative covenants. iv. Which of the following is not an example of a negative covenant provision? b. Which statement best describes stock options? Which of the following is an example of an affirmative covenant A Restriction from ACC 205 at Defence Authority Degree College ... Quizlet Live. The borrower is: A . As part of this, you publish what’s called an affirmative action statement (or “affirmative action policy statement”) Below are 5 samples of affirmative action statements. By signing up for this email, you are agreeing to news, offers, and information from Encyclopaedia Britannica. “Affirmative action” in the US is conceptually somewhat similar to the reservation system in India, but with a major difference: there are no quotas in the US. Many loan agreements have financial covenants that rely on: Which of the following situations does not lead to default of a loan contract? Why Does Negative Covenant Matter? O Borrower must maintain insurance on the collateral. Complying with laws. … 0. For example, the negative covenant may include leases in a debt-limit calculation, or it may consider capital leases as an expense. Affirmative (or Positive) Covenant. Affirmative action refers to a set of procedures implemented for the purpose of eliminating discrimination in educational and employment opportunities. means any affirmative or similar covenant made by the Borrowers set forth in this Agreement or in any other Loan Document. Negative Covenant: A negative covenant is a bond covenant preventing certain activities, unless agreed to by the bondholders . adjective. Debt covenants are not used to place a burden on the borrower. Translation for 'Affirmative Covenant' in the free German-English dictionary and many other English translations.
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