Negative pledge

From The Jolly Contrarian
Revision as of 10:55, 1 July 2019 by Amwelladmin (talk | contribs) (Created page with "{{g}}An agreement with one lender not to pledge security in favour of another one. A rather bankery thing, much more fashionable in the olden days than now, and probably the g...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search
The Jolly Contrarian’s Glossary
The snippy guide to financial services lingo.™
Index — Click the ᐅ to expand:
Tell me more
Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

An agreement with one lender not to pledge security in favour of another one. A rather bankery thing, much more fashionable in the olden days than now, and probably the genesis of the curious No event of default or potential event of default representation we all know, love and routinely pass over when perusing our counterparty’s early draft.

See also