What is a Revolving Loan? Revolvers are some of the most common loan products available from commercial banking and corporate banking. Most people are familiar with the concept of a regular loan. The borrower takes out a fixed amount of money (the loan principal) that must be paid off along with the

What are Covenants in a Loan Agreement or Bond Indenture? In the most basic sense, a covenant is an agreement between two or more parties, where one party makes a solemn promise to refrain from or to engage in a specific activity. In the banking (financial) world, a covenant in a formal