A covenant that specifies a required minimum level of net worth and working capital is a/an

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A covenant that specifies a required minimum level of net worth and working capital is a financial covenant, as it relates to the borrower's financial position and outlines a specific requirement for maintaining that financial position. Compliance covenants are broader in scope and relate to the borrower's overall compliance with the terms of the loan agreement, while negative covenants restrict the borrower's actions in specific areas. An implicit covenant is not specifically stated in the loan agreement but is generally understood to exist based on customary practices or industry standards.

A Covenant That Specifies a Required Minimum Level of Net