Negative pledge: Difference between revisions
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imported>Doug Williamson m (Spacing 21/8/13) |
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A term used in loan documentation. It is a promise not to create a class of creditor that ranks above the lender in priority for repayment. | A term used in loan documentation. It is a promise not to create a class of creditor that ranks above the lender in priority for repayment. | ||
Usually this means that, for an unsecured loan, the borrower promises not to grant security to another, subsequent lender. | Usually this means that, for an unsecured loan, the borrower promises not to grant security to another, subsequent lender. | ||
== See also == | == See also == | ||
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* [[Pari passu clause]] | * [[Pari passu clause]] | ||
* [[Security]] | * [[Security]] | ||
Revision as of 15:49, 21 August 2013
A term used in loan documentation. It is a promise not to create a class of creditor that ranks above the lender in priority for repayment.
Usually this means that, for an unsecured loan, the borrower promises not to grant security to another, subsequent lender.
