Seizure of collateral is one possible remedy for breach of covenant restrictions.

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Seizure of collateral is a common remedy for breach of covenant restrictions, where the lender can take possession of the collateral pledged by the borrower as security for the loan. This is usually specified in the loan agreement and can be a highly effective way for the lender to recover their losses in case of default by the borrower.

Seizure of Collateral Is One Possible Remedy for Breach of Covenant