1 37. Which one of the following is not a broad function served v debt covenants? Multiple Choice Debt covenants are designed to preserve the borrower's repayment capacity. Debt covenants usually preclude the borrower from being a merger target. Debt covenants offer the lender some protection against credit- damaging events affecting the borrower. Debt covenants serve as both signals and triggers, thereby assuring a steady flow of information from borrower to lender. 5:25 PM