A covenant in a municipal revenue bond that specifies how it will be determined...
A provision in the bond agreement or resolution that addresses the rate or method used to establish the fee(s) charged to users of the facility financed by the securities. Typically, a rate covenant promises that the fees will be adjusted when necessary to support the timely payment of interest and principal on the bonds.
A provision governing a municipal revenue project financed by a revenue bond issue, which establishes the rates to be charged users of the new facility.
A contractual agreement in the legal documentation of a bond issue requiring the issuer to charge rates or fees for the use of specified facilities or operations at least sufficient to achieve a stated minimum debt service coverage level.
A revenue bond issuer's commitment to maintain rates at a level sufficient to produce of specif8ed debt service coverage.
A revenue bond issuer s commitment to maintain rates at a level sufficient to produce a specified debt service coverage.
A legal commitment by a revenue bond issuer to maintain rates at levels to generate a specified debt-service coverage.