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Restrictions placed on a company by creditors are referred to as "covenants." These covenants can be financial or operational in nature and are typically outlined in loan agreements or bond indentures. They are designed to protect the interests of creditors by ensuring that the company maintains certain financial ratios, limits additional borrowing, or adheres to specific operational practices. Breaching these covenants can lead to penalties or accelerated repayment demands from creditors.

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