covenant

Definition

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 the purchased structure had to be fully insured by a reputable insurance company.

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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.

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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.

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recital covenant not to complete