Covenants

Covenants are formal agreements or promises that establish specific obligations or restrictions between parties, often in legal, financial, or property contexts. For instance, in real estate, a covenant might require homeowners to maintain their properties in a certain way or prevent them from doing specific things, like building fences over a certain height. In finance, covenants are rules in loan agreements that borrowers must follow, like maintaining a certain level of income. Overall, covenants help ensure that commitments are upheld and provide structure to relationships and transactions.