Which of the Following Is Considered a Negative Covenant

question 4

Multiple Choice

Which of the following is considered a negative covenant?

• A) A borrower will keep the lender informed of its financial condition.
• B) A borrower will maintain insurance policies.
• C) A borrower may not incur additional debt beyond a specified amount.
• D) A borrower will inform the lender of any material adverse change in its operations or financial condition.

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Definitions:

Mixed Race

Refers to people who have ancestry from different racial groups, emphasizing the diversity in their heritage.

Racial Categorization

The classification of individuals into groups based on physical characteristics, such as skin color or facial features.

Biological Categories

Classifications of living things based on shared biological characteristics and genetic traits.

Dominant Group

The group that assigns a racial or ethnic group to subordinate status in society.