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What Is the Classification of a Covenant Requiring a Borrower

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What is the classification of a covenant requiring a borrower to maintain assets, collateral, or other securities?


Definitions:

Equitable Assignment

The transfer of future rights to benefits in a contract to another party, recognized by equity courts.

Novation

The process of replacing an existing obligation with a new one, effectively transferring the rights and duties to another party.

Breach of Contract

The act of not executing any part of a contract, either written or oral, lacking a legitimate legal rationale.

Non Est Factum

A legal defense claiming a person signed a document without understanding its nature due to a fundamental mistake.

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