The Main Difference Between Direct Private Long-Term Debt fiNancing and Public

question 204

True/False

The main difference between direct private long-term debt financing and public issues of debt is
that direct placements are less likely to have restrictive covenants.

---

Definitions:

Refusal of Credit

The denial of a request for borrowing money based on an assessment of creditworthiness.

Credit Reporting Legislation

Laws regulating the collection, access, and use of credit information about individuals.

Consumer Credit Report

A detailed document that contains an individual's credit history, including loans, repayments, and late payments, used by lenders to evaluate creditworthiness.

Debtor's Permission

The consent required from a debtor before certain actions, such as the sale or use of collateral, can be taken by creditors.