Negative covenants require the borrower to take certain actions,such as periodically filing of financial statements and maintaining insurance coverage.

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Negative covenants actually require the borrower to refrain from certain actions, such as taking on additional debt or selling off major assets without the lender's consent. The actions described in the statement are typically required by affirmative covenants.

Negative Covenants Require the Borrower to Take Certain Actions,such as Periodically