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

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A positive covenant requires a borrower to take affirmative actions, such as paying taxes and other liabilities when due. A negative covenant, on the other hand, prohibits a borrower from taking certain actions. A lien is a legal claim against property as security for a debt, and a term loan is a type of loan with a fixed repayment term.

A Contractual Clause That Requires a Borrower to Pay Taxes