Which of the following covenants would not appear in a loan agreement?
A)Limits on additional debt
B)Dividend payout limitations
C)Valuation
D)Minimum times-interest-earned ratio

Question

Quizplus · Accepted Answer

Valuation is not typically included as a covenant in a loan agreement. Covenants typically relate to the borrower's financial performance and the lender's protection, such as limits on debt, dividend payouts, and minimum times-interest-earned ratios.

Which of the Following Covenants Would Not Appear in a Loan