A lender may limit the ability of a company to pay future dividends in order to ensure that loan proceeds are used for purposes that will increase the company's profits and ability to repay the loans. Which of the following statements is true in this regard? Multiple Choice The lender may require instant repayment of debt if the loan proceeds are instead used finance the payment of dividends. The circumstance described in the statement is an example of a loan covenant. O All of the answers are acceptable. Such restrictions must be reported in the notes to the financial statements