A covenant is a restriction lenders impose on borrowers as a condition of providing long-term debt financing.

Name: A covenant is a restriction lenders impose on borrowers as a condition of providing long-term debt financing.
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This statement is true. Covenants can include financial ratios, limitations on additional borrowing, restrictions on dividend payments, and requirements to maintain certain levels of insurance, among other things.

A Covenant Is a Restriction Lenders Impose on Borrowers as a Condition