If Bill Bailey, owner of Cherokee Communications, had violated the covenants of his loan agreement,
A) the loan payments would have been automatically rescheduled.
B) the loan interest rate would have increased to maximum legal rate.
C) the borrower's liability would have become unlimited.
D) the lender could have declared the loan due in full immediately.

Question

Quizplus · Accepted Answer

If the borrower violates the covenants of the loan agreement, the lender has the right to declare the loan due in full immediately. This means that the borrower would have to repay the entire loan amount immediately or face legal action.

If Bill Bailey, Owner of Cherokee Communications, Had Violated the Covenants