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:

Physiological

Refers to the normal functions of living organisms and their parts.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Physiological

relating to the normal functioning of living organisms and their parts, as well as the physical and chemical processes involved.

Safety Needs

The second level of Maslow's hierarchy, encompassing security, stability, and freedom from fear.