negative pledge

negative pledge
A document or a provision in a document in which a borrower agrees not to give any creditor a security interest in identified property owned by the borrower. American Banker Glossary
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An agreement in which the borrower agrees not to pledge any of its assets as security and/or not to incur further indebtedness. Bloomberg Financial Dictionary

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   A clause in a bond agreement which prevents the borrower from pledging greater security or collateral to other lenders.

Financial and business terms. 2012.

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  • negative pledge — An undertaking given by a borrower to a bank not to create any other secured indebtedness, (whether ranking before or after the bank) without its consent usually as part of the bank s standard documents Easyform Glossary of Law Terms. UK law… …   Law dictionary

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  • Negative Pledge Clause — A negative covenant in an indenture stating that the corporation will not pledge any of its assets if doing so gives the lenders less security. Also be referred to as a covenant of equal coverage . A negative pledge clause is just another way for …   Investment dictionary

  • negative pledge — noun A type of loan or loan condition in which the borrower agrees with the lender not to allow any other lender or creditor to rank ahead for payment in the event of a liquidation. Such a loan is unsecured (ie. not backed by a charge over… …   Wiktionary

  • negative pledge — promise not to mortgage property …   English contemporary dictionary

  • negative pledge — A covenant in a loan agreement in which a borrower promises that no secured borrowings will be made during the life of the loan or will ensure that the loan is secured equally and ratably with any new borrowings as specifically defined …   Accounting dictionary

  • negative pledge — A covenant in a loan agreement in which a borrower promises that no secured borrowings will be made during the life of the loan or will ensure that the loan is secured equally and ratably with any new borrowings as specifically defined …   Big dictionary of business and management

  • Negative pledge clause — A bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders. The New York Times Financial Glossary …   Financial and business terms

  • negative pledge clause — A bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders. Bloomberg Financial Dictionary …   Financial and business terms

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