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:

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug that alters perception and mood.

Amphetamine

A stimulant drug that increases the activity in the central nervous system, boosting energy, concentration, and alertness.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue that extends from the brainstem down the vertebral canal, playing a critical role in transmitting neural signals between the brain and the rest of the body.