Finance Terms Flashcards
1
Q
The act of releasing or transferring funds from a lender to a borrower
A
Disbursed
the loan was disbursed to the company’s account after all the necessary documentation was reviewed and approved by the bank
2
Q
Conditions in a loan agreement that require the borrower to take certain actions or maintain specific standard throughout the duration of the loan»_space; the borrower must do something.
A
Positive Covenant
* Provide audited financial statements for Northview Fund within 120 days of it s fiscal year end*
3
Q
Conditions in a loan agreement that restrict the borrower from taking certain actions»_space; the borrower is prohibited from doing something.
A
** Negative covenant **
