In terms of covenant types, what does an affirmative covenant require?

An affirmative covenant is a provision in a loan agreement that obligates the borrower, or debtor, to take specific actions. This generally includes commitments such as maintaining insurance, providing financial statements, complying with applicable laws, and making timely payments. The purpose of an affirmative covenant is to ensure that the borrower engages in certain behaviors that are deemed financially responsible and protect the interests of the lender.

In contrast, other options, which might imply restrictions or requirements for the borrower to avoid specific actions, pertain more to negative covenants. The maintenance of a credit rating or the requirement to submit to audits could be classified under various other covenant types, but they don't represent the core requirement of affirmative covenants, which is specifically about performing actions to fulfill the contract terms. Therefore, the focus on performance rather than avoidance of actions defines why the provided answer is accurate.