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When a Borrower Violates a Loan Covenant That Requires Minimum

Question 112

Multiple Choice

When a borrower violates a loan covenant that requires minimum achievement of an accounting measure in the financial statements,the lender can


A) immediately seize the loan collateral.
B) fire the chief operating officer of the borrower.
C) report the borrower to the IRS.
D) call for immediate repayment of the loan.

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