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A Positive Covenant to an Indenture or Loan Agreement Would

Question 16

Multiple Choice

A positive covenant to an indenture or loan agreement would:


A) set a condition the company must follow such as not pledge any assets to other lenders.
B) set a condition that the trustee can eliminate sinking fund payments.
C) allow the trustee to call the bonds in.
D) allow the company to pay dividends only semi-annually.
E) set a condition that the company must follow such as providing regular (periodic) financial statements to the lender.

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