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Loan covenants: 1. protect the borrower from lender interference in management. 2. are limited to negative provisions. 3. may limit discretionary cash outlays by borrowers.

Loan covenants:

1.

protect the borrower from lender interference in management.

2.

are limited to "negative" provisions.

3.

may limit discretionary cash outlays by borrowers.

4.

are seldom enforced.

5.

often result in the lender's bankruptcy.

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