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Debt Covenants
Agreements between a borrower and lender that outline conditions the borrower must comply with to avoid default.
Affirmative Covenants
Clauses in a financial contract that require the borrower to perform certain activities to maintain the financial health and stability of the company.
Total Indebtedness
The sum of a company’s short-term and long-term liabilities.
Financial Covenant
A clause in a loan agreement that requires the borrower to meet certain financial conditions, often used by lenders to protect their investments.
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