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The specific combination of collateral and covenant to call capital Free comprehensive playbook on credit facilities for cfos and finance leaders Lenders may require a covenant in the loan documents requiring the loan parties to call capital during an event of default to repay any outstanding debt creditworthiness, provided that such covenant does not interfere with any subscription credit facility that may exist.
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An increasing number of covenant breaches signals heightened credit risk and may call for additional collateral or more stringent credit terms
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