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The section of a loan agreement that describes circumstances in which the creditor obtains additional rights is called th

User PierreB
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Question Completion:

The section of a loan agreement that describes circumstances in which the creditor obtains additional rights is called the ______section.

a. events of compliance

b. certificate of compliance

c. events of termination

d. events of default

Answer:

The section of a loan agreement that describes circumstances in which the creditor obtains additional rights is called the ______section.

d. events of default

Step-by-step explanation:

In loan covenants, an event of default is the meeting of some specified conditions or thresholds that allow the lender or creditor to demand immediate and full repayment of a debt or meeting of an obligation. Events of default may relate to delinquent payment, breach or insolvency, etc. As a breach of a contract, an event of default is a serious failure on the borrower to observe a provision of the contract. This leads to the lender calling for the termination of the contract.

User Soumya Ranjan
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