The limitations within a bond indenture agreement that prohibit certain actions by a firm are called:

A) Sinking fund provisions.
B) Negative covenants.
C) Debenture provisions.
D) Call provisions.
E) Seniority requirements.

Negative Covenants

Provisions in a loan agreement that restrict certain actions of the borrower to protect the lender's interests.

Bond Indenture

A legal contract detailing the terms and conditions under which a bond is issued, including interest rates, maturity dates, and issuer obligations.

Sinking Fund

A fund set aside by a corporation for the purpose of repaying debt or buying back shares, to ensure financial stability and investor confidence.