Can a protective covenant be included in a loan agreement?
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thalia
Apprentice
Joined: 15 Jan 2007
Posts: 1
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 Posted: 08/09/08 - 08:59 Post subject: |
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| Hi there people. My name is Stephanie and I would appreciate if you could give me some information about bonds. I would like to purchase some bonds and I am not clear about one detail. Can you tell me what is indenture? I am also interested in protective covenant. Can protective covenant be included in a loan agreement? Thank you. |
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allen
Apprentice
Joined: 02 Nov 2004
Posts: 2
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| Posted: 09/08/08 - 00:19 Post subject: |
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| Hi there Stephanie. I would like to say first that I think it’s very good choice that you’ve made for investing. Bonds can give you a nice little profit and still be much safer than stocks or some other securities. Now, indenture is a legal document presented to the buyers of bonds. It is also known as deed of trust, trust indenture or loan agreement. What it contains is all the details about the bonds you purchase. For example, maturity period, interest rate, convertibility and all the other terms are there. Protective covenant can also be included in the loan agreement. It is a clause which prevents the issuer of security to take some actions which would not be in your interest. That would be all from me. Take care! |
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