A clause in a contract that requires one party to do, or refrain from doing, certain things. Often, a restriction on a borrower imposed by a lender. also called covenant. also called restrictive covenant.

Use covenant in a sentence

One of the covenants of the mortgage was that the purchased structure had to be fully insured by a reputable insurance company.

​ Was this Helpful? YES  NO 11 people found this helpful.

My mom had to sign a covenant when she built her house stating that she would pay back the money she borrowed for her construction loan.

​ Was this Helpful? YES  NO 8 people found this helpful.

As part of our agreement, we have established a covenant that you will not make use of any other company for your financial needs, but will work with us exclusively.

​ Was this Helpful? YES  NO 10 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
poison put running with the land