A Provision in a Loan Agreement That the Borrower Cannot

question 46

Multiple Choice

A provision in a loan agreement that the borrower cannot incur additional debt beyond a certain amount is an example of a(n) __________ covenant.

• A) absolute
• B) prohibitive
• C) negative
• D) affirmative

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Definitions:

Sensory Neuron

A type of neuron responsible for converting external stimuli from the environment into internal electrical impulses towards the brain or spinal cord.

Motor Neuron

A type of neuron that transmits signals from the brain or spinal cord to muscles or glands, triggering movement or action.

Sciatic

Pertaining to the sciatic nerve, which is the longest nerve in the human body, running from the lower back down through the leg.

Femoral

Pertaining to the femur or the thigh region.