Which of the Following Is Not a Common Restrictive Covenant

question 147

Multiple Choice

Which of the following is not a common restrictive covenant included in bond indentures to reduce risk to the investor?

• A)Maintenance of designated thresholds measured by financial ratios
• B)Restrictions on future borrowing activities
• C)Requirements that the names and addresses of the bondholders be registered with the bond issuer
• D)Limitations on the payment of dividends

---

Definitions:

Auto Theft

The illegal action of taking another's vehicle without permission with the intent to permanently or temporarily deprive the owner of it.

Use Of Violence

The intentional application of force to harm, intimidate, or control others.

Joyriding

The act of driving a vehicle without the owner's permission, typically done for thrill or enjoyment, rather than for the purpose of committing a theft.

Commit Another Crime

The action of engaging in illegal activities or offenses after previously offending.