A loan covenant is very likely to require

Question

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A loan covenant is a contract provision that requires certain actions or limits certain activities of a borrower. Salary limitations are a common type of covenant that restricts the amount of money a borrower can pay its executives or employees. It is designed to ensure that the borrower has enough cash flow to pay back the loan. Bank officers on the board of advisors, voting rights, and a fixed business strategy are not typically included in loan covenants.

A Loan Covenant Is Very Likely to Require