Loan Covenants

question 77

Multiple Choice

Loan covenants:

• A)describe the collateral of the loan.
• B)require the borrower to maintain certain financial characteristics.
• C)describe the lender's responsibilities.
• D)include all the above.

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Definitions:

Equal protection

A constitutional guarantee that no person or group will be denied the same protection of the laws that is enjoyed by other similarly situated individuals.

Constitutional guarantee

A commitment within a country's constitution that ensures certain rights and freedoms to its citizens.

Equal Protection clause

A provision in the Fourteenth Amendment of the U.S. Constitution that requires state governments to treat individuals in similar situations equally.

Diversity

The inclusion of individuals from a variety of backgrounds, perspectives, and abilities in a group or organization.