English Explanatory Dictionary

negative pledge

English dictionary entry

Meanings

noun
  1. 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 specific assets).

Word forms

negative pledge negative pledges

Etymology

The idea (and hence presumably the name) developed in the United States, and then went global. (Reference: Trevor Sykes, The Bold Riders, second edition, 1996, →ISBN, page 8.)

This entry uses open data from Wiktionary (CC BY-SA/GFDL). Word forms are used for search and are not indexed as separate pages.
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