A Clause in a Debt Contract Requiring That the Borrower

question 60

Multiple Choice

A clause in a debt contract requiring that the borrower purchase insurance against loss of the asset financed with the loan is called a

• A)collateral-insurance clause.
• B)prescription covenant.
• C)restrictive covenant.
• D)proscription covenant.

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Definitions:

Intellectual Disability

A developmental disorder characterized by limitations in both intellectual functioning (such as learning, problem-solving, judgment) and in adaptive behavior.

Down Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21, characterized by physical growth delays and intellectual disabilities.

Protruding Tongue

A condition where the tongue extends beyond the lip border, often observed in developmental disorders or neurological conditions.

Trisomy 21

A genetic disorder caused by the presence of an extra 21st chromosome, also known as Down syndrome, leading to developmental and physical changes.