Often Loan Agreements Require the Borrower to Comply with Certain

question 140

Multiple Choice

Often loan agreements require the borrower to comply with certain requirements,such as maintaining a particular current ratio or limiting future borrowing.To decide if a company has complied with its loan covenants,a creditor would look at the company's:

• A)financial statements.
• B)chart of accounts.
• C)bank statements.
• D)charter.

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Definitions:

UCC

The Uniform Commercial Code is a widespread legislative schema that guides all commercial operations in the United States.

Security Agreement

is a legal document that provides a lender a security interest in a specified asset or property that serves as collateral for a loan.

Online

Connected to or available through the internet or other digital network.

Attachment

The legal process of seizing a debtor's property to secure or satisfy a judgment.