Which of the following statements about loan terminology is correct?
A. A secured loan means that the borrower has a pre-approved line of credit backing the debt.
B. Loan covenants are the collateral provided by a borrower to a lender as security on a loan.
C. All companies are able to establish lines of credit which will allow them to borrow money as needed, up to a prearranged limit.
D. Lenders can revise loan terms if a borrower violates a loan covenant.
Answer: D
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