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A positive covenant to an indenture or loan agreement would: A.set a condition the company must follow such as not pledge any assets to other

A positive covenant to an indenture or loan agreement would:

  • A.set a condition the company must follow such as not pledge any assets to other lenders.
  • B.set a condition that the company must follow such as providing regular (periodic) financial statements to the lender.
  • C.set a condition that the trustee can eliminate sinking fund payments.
  • D.allow the trustee to call the bonds in.
  • E.allow the company to pay dividends only semi-annually.

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