Final answer:
The statement is false. Covenants can be added from sources other than the loan record, such as lease agreements or partnership agreements.
Step-by-step explanation:
The statement is false: you can add covenants from sources other than the loan record. Covenants are conditions or restrictions placed on a borrower by a lender to protect the lender's interests and ensure that the borrower fulfills certain obligations.
Covenants can be found in loan agreements, but they can also be present in other types of contracts, such as lease agreements or partnership agreements.
For example, a partnership agreement may include covenants regarding the partners' responsibilities, profit-sharing, or non-compete clauses.