Term loans impose restrictions called ________.
A)conditions
B)limits
C)rules
D)covenants

Name: Term loans impose restrictions called ________. A)conditions B)limits C)rules D)covenants
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Question

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Term loans generally come with restrictions for the borrower called covenants. These covenants dictate the actions the borrower can or cannot take while repaying the loan to ensure the lender's investment is protected. Failure to meet these covenants may result in default or penalty fees.

Term Loans Impose Restrictions Called ________