A contractual clause that requires a borrower to pay taxes and other liabilities when due is an example of a

Question

Quizplus · Accepted Answer

A positive covenant is a contractual clause that requires a borrower to do something, such as paying taxes and other liabilities when due. This is different from a negative covenant, which restricts the borrower's actions and requires them not to do something. A lien is a legal claim to an asset as security for a debt, and a term loan is a type of loan that is repaid in fixed installments over a set period of time. Therefore, the best choice for this scenario is A) positive covenant.

A Contractual Clause That Requires a Borrower to Pay Taxes