Clauses That Specify the Rights of the Bondholders and Any

question 22

Multiple Choice

Clauses that specify the rights of the bondholders and any actions that the issuer is obli- gated to perform or is prohibited from performing are:

• A) covenants.
• B) collaterals.
• C) credit enhancements.

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Definitions:

Creditors

Individuals or entities to whom money is owed by a debtor, who has borrowed funds or purchased goods/services on credit.

Bankruptcy

A judicial procedure allowing people or companies that are incapable of fulfilling their debt payments to obtain exemption from paying off some or all they owe.

Sell Interest

To transfer one's ownership stake in a company or property to another party, often for compensation.

Articles Of Partnership

A legal document that sets out the terms and conditions under which a partnership operates, including the responsibilities of the partners.