Restrictions imposed by loan contracts on the operations of a business,such as requiring that a specific minimum net worth be maintained,a specific debt-to-equity ratio not be exceeded,no dividends be paid to stockholders and so on,are known as

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Loan covenants are specific terms and conditions mentioned in a loan agreement that the borrower must follow. These restrictions are put in place to mitigate the risks associated with lending money to a borrower. They are generally included to protect the interests of the lender and often include restrictions on the borrower's operations, financial activities, and other activities until the loan is fully repaid.

Restrictions Imposed by Loan Contracts on the Operations of a Business,such