Loan covenants and negative pledges are alternative security arrangements to mortgages for wholesale loans.

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Loan covenants are contractual agreements between the borrower and lender that set out certain conditions that must be met by the borrower. Negative pledges are agreements where the borrower agrees not to create any further security or encumbrances on its assets, which provides additional protection to the lender. Both of these are alternative security arrangements to mortgages for wholesale loans.

Loan Covenants and Negative Pledges Are Alternative Security Arrangements to Mortgages