Which of the following is/are not a part of negative covenants in a Loan Agreement ?

CS Executive · Financial and Strategic Management · PYQS · June 2022
Which of the following is/are not a part of negative covenants in a Loan Agreement ?
(A) Restrictions to pay commission to Promoters, Directors, Managers or any other person for furnishing the guarantee or indemnity for the undertaking
(B) Restrictions to pay dividend to the equity shareholders in case of default in payment of interest or repayment of principal
(C) Restrictions on creating a charge or lien on the assets of the undertaking
(D) None of the above

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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