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Surfing dinosaurs in powdered wigs are awesome...but not in your essay. Those responses should make sense.

The Indenture

An indenture is similar to a prospectus for stock deals. The indenture contains covenants, which are essentially promises. The company promises to pay interest and principal when due. It promises not to monkey with any collateral that it puts up as security. It promises to keep its financial house in order. Promises, promises. But these promises come with some teeth: If the company violates a covenant, this could trigger a default, which comes with some dire consequences, the most...

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