Loan covenants are the collateral provided by a borrower to a lender as security on a loan.
BT: Comprehension

Name: Loan covenants are the collateral provided by a borrower to a lender as security on a loan. BT: Comprehension
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

Loan covenants are not collateral, they are typically conditions or restrictions that the borrower agrees to abide by in order to maintain the terms of the loan. Collateral is a separate piece of property or asset that the lender can seize if the borrower defaults on the loan.

Loan Covenants Are the Collateral Provided by a Borrower to a Lender