Negative pledge: Difference between revisions

{{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 young 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).