Question: Identify which of the following loan covenants are affirmative and which are negative covenants:
a. Nige Trading Corporation must pay no dividends to its shareholders above $3 per share without express lender approval.
b. Honey Smith Company pledges to fully insure its production line equipment against loss due to fire, theft, or adverse weather.
c. Soft-Tech Industries cannot take on new debt without notifying its principal lending institution first.
d. PennCost Manufacturing must file comprehensive financial statements each month with its principal bank.
e. Dolbe King Company must secure lender approval prior to increasing its stock of fixed assets.
f. Crestwin Service Industries must keep a minimum current (liquidity) ratio of .5x under the terms of its loan agreement.
g. Dew Dairy Products is considering approaching Selwin Farm Transport Company about a possible merger but must first receive lender approval.