Negative pledge

The Jolly Contrarian’s Glossary The snippy guide to financial services lingo.™ →Go uptown Index — Click the ᐅ to expand: Glossary 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

• Representations and Warranties Anatomy