Which of the Following Are Negative Covenants That Might Be

question 27

Multiple Choice

Which of the following are negative covenants that might be found in a bond indenture?
I.The company shall maintain a current ratio of 1.10 or better.
II.No debt senior to this issue can be issued.
III.The company cannot lease any major assets without approval by the lender.
IV.The company must maintain the loan collateral in good working order.

• A)I and II only
• B)II and III only
• C)III and IV only
• D)II, III, and IV only
• E)I, II, and III only

---

Definitions:

Stability of Personality

The concept that an individual's basic personality traits tend to remain relatively consistent throughout adulthood.

Share Confidences

The act of exchanging private information or feelings with another, often building trust and intimacy in a relationship.

Marital Problems

Issues or conflicts between married partners that can strain their relationship.

Receive Advice

The act of accepting guidance or recommendations from another person, usually in effort to make decisions or solve problems.