Borrowers must not sell account receivables to generate cash because by doing so they could cause a long run shortage if the borrower uses the proceeds to meet current obligations
A long-term borrower faces fixed assets restriction with respect to liquidation, acquisition and encumbrance of the fixed assets
Borrowers are prohibited from additional long term borrowing or are required that any additional loans be subordinated to the current loans
Borrowers may not enter into certain types of leases to limit further financial obligations
The lender may prohibit salary increases for certain employees
Dana05 answered the question on July 15, 2019 at 15:26
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July 15, 2019
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