These are a series of promises on how to conduct business so that the loan repayment and collateral is not jeopardized. For example, a promisee promises to maintain a certain working capital and/or not to take any more debt. Or, the promissee may also promise to let the lender know that the promisee is defaulting on a loan. Often the borrower will promise that he/she will not take on more debt. The borrower must also tell the lender if he/she defaults on other loans so that the lender can accelerate his/her rights under the agreement. Typical covenants include: 1. maintaining a debt-to-earning ratio; maintaining a working capital; not defaulting on this loan; not defaulting on other loans; and not infringing the collateral.