Wortformen:(regular plural) debt covenants
( Finance : Banking , Credit )
The credit quality of a loan may be affected by a borrower's failure to comply with
debt covenant terms.
A positive debt covenant is one in which the borrower is considered to be in default on all debts if they
are in default on any debt to any lender.
A debt covenant is a number of restrictions that a borrower agrees to that are set by the lending
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