The LSTA's Complete Credit Agreement Guide, Second Edition, 2nd Edition

7.5.4.1 Books and Records

Box 7.23

The Borrower will, and will cause each Subsidiary to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities.

Few borrowers fail to keep proper books and records, and, if they do, the lender probably has bigger problems than just the borrower’s bad accounting. Nevertheless, the covenant is included so that, if in exercising its inspection rights, a lender determined that inadequate books and records were being maintained, the lender could point to the covenant as a basis for taking remedial action.

7.5.4.2 Properties

Box 7.24

The Borrower will, and will cause each Subsidiary to, keep and maintain ...