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The Written Agreement Between a Corporation and Its Bondholders Might

Question 37

Multiple Choice

The written agreement between a corporation and its bondholders might contain a prohibition against paying dividends in excess of current earnings. This prohibition is an example of a(n) :


A) maintenance of security provision.
B) collateral restriction.
C) affirmative indenture.
D) restrictive covenant.
E) None of these.

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