LOAN COVENANT Definition

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LOAN COVENANT is a legally enforceable promise or restriction in a mortgage. For example, the borrower may covenant to keep the property in good repair and adequately insured against fire and other casualties. A breach of covenant in a mortgage usually creates a default, defined by the mortgage, and can be the basis for foreclosure.

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BOND INDENTURE is the title specifying all the obligations of the issuing company to the bondholder.

PR is an acronym for, among others, public relations, payroll and purchase request.

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