Acceleration covenant

This is a means to protect the capital of the creditor in a form of an agreement. If the company who borrowed a certain amount of money cannot maintain a certain level of asset rating, the debtor is forced to pay the creditor under the terms. For example if the contract states that, if the total sales of the company at anytime falls below $500,000, immediate repayment of debt is required.

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use