Carve-out
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1. Documentation and regulation.
A carve-out is a special exception.
A carve-out can be used in the context of a loan agreement; a negative pledge might apply to all but specific subsidiaries.
Carve-outs might also be used in the context of regulation where, effectively, a section or sections might be dis-applied.
2. Corporate finance.
A transaction in which a holding company sells an equity interest in one of its subsidiary companies to external investors.
