A covenant is a provision in a loan agreement to protect lenders' interests by requiring certain actions to be taken and others refrained from.

Name: A covenant is a provision in a loan agreement to protect lenders' interests by requiring certain actions to be taken and others refrained from.
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Quizplus · Accepted Answer

This is correct. Covenants are indeed provisions in loan agreements that require certain actions and restrictions to protect the interests of the lender.

A Covenant Is a Provision in a Loan Agreement to Protect