Question
Which of the following term is used to describe the
conditions imposed by the lender on the borrower that certain activitiesĀ will orĀ willĀ not beĀ carried out?Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā ĀSolution
Covenants are stipulated by the lenders toĀ protect themselves from borrowers defaulting onĀ their obligations dueĀ to financial actions detrimental to themselves or the business. Covenants are stipulated at the timeĀ of sanction / approval of limits or at the time of review of facilities
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