Final answer:
Restrictive covenants are terms in a loan agreement that limit certain actions by the borrower in order to protect the lender's interests.
Step-by-step explanation:
The part of the indenture limiting certain actions during the term of the loan is termed restrictive covenants. These are provisions included within a debt instrument or other agreement that place constraints on the borrower to protect the interests of the lender. Restrictive covenants typically outline what the issuer of the bond can and cannot do during the term of the loan. This can include limitations on additional borrowing, requirements to maintain certain financial ratios, or constraints on the sale of assets.