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Negative pledge: Difference between revisions
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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...") |
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{{g}} | {{g}}A [[negative pledge]] is an covenant a [[borrower]] makes to one [[lender]] not to create [[Security interest|security]] over its assets in favour of another lender. A rather bankery thing — if obeyed, it preserves a fellows jostling space at the bar should the counterparty go to hell — but does rather, cramp a youjng undertaking’s style. Thus, much more fashionable in the olden days than now, and probably the genesis of the curious {{repprov|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. (we can’t think of any other reason for it, that is to say). | ||
{{sa}} | {{sa}} | ||
*[[Representations and Warranties Anatomy]] | *[[Representations and Warranties Anatomy]] | ||