The Purpose of a Covenant Is

question 34

Multiple Choice

The purpose of a covenant is:

• A)to protect the lender in the event of default by the borrower.
• B)to protect the borrower in the event of increasing product market competition.
• C)to protect the borrower in the event of default by the lender.
• D)to protect the borrower in the event of a deterioration of the credit quality of the lender.

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