Loan Covenants

question 77

Multiple Choice

Loan covenants:

• A)describe the collateral of the loan.
• B)require the borrower to maintain certain financial characteristics.
• C)describe the lender's responsibilities.
• D)include all the above.

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Definitions:

Marijuana

A substance obtained from the Cannabis plant that affects the mind, used for health-related or recreational reasons.

Methamphetamines

A powerful, highly addictive stimulant drug that affects the central nervous system, known for its high potential for abuse and addiction.

Depression

An emotional health issue identified by a continuous feeling of melancholy or a decrease in passion for activities, which greatly hinders day-to-day operations.

Mania

A mental health condition marked by an overly high mood, energy, and activity levels, often found in bipolar disorder.