negative covenant

问题如下：

Which of the following best describes a negative bond covenant? The requirement to:

选项：

A.

insure and maintain assets.

B.

comply with all laws and regulations.

C.

maintain a minimum interest coverage ratio.

解释：

C is correct.

Negative covenants enumerate what issuers are prohibited from doing. Restrictions on debt, including maintaining a minimum interest coverage ratio or a maximum debt usage ratio, are typical examples of negative covenants.

考点：postive & negative covenants

解析：A选项确保资产以及B选项遵守法律条款都属于肯定性条款。C选项出现了比率，属于否定性条款，故选项C正确。