A negative pledge clause is a provision in a loan agreement by which the borrower agrees not to grant a security interest in, or to permit a lien to arise on, some or all of the borrower's assets in favor of a third party. Many lenders are willing to provide a commercial line of credit without obtaining a deed of trust, but require the borrower to execute a negative pledge agreement. Negative pledge clause definition: a bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured.
This field is for validation purposes and should be left unchanged american bank systems 14000 parkway commons dr oklahoma city, ok 73134 google map. Video shows what negative pledge means 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. Negative pledge so long as the credit facilities, or any amendments, renewals or replacements thereof, shall remain outstanding, the pledgor will not, and will not permit any of its subsidiaries to, without the prior written consent of the lender: (a) sell, transfer, assign or lease any of the real property.
Login or register (free and only takes a few minutes) to participate in this question you will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them. World bank and the negative pledge clause may 29, 2014 / kate barth during tumultuous fiscal years of the past few decades, the world bank, acting in its capacity as lender of last resort, granted unsecured loans to debt-ridden sovereign nations. Translation for 'negative pledge' in the free english-dutch dictionary and many other dutch translations.
Negative pledge related content an undertaking by a debtor to a lender not to create, or permit to subsist, security or otherwise encumber certain of its assets in certain circumstances without the prior written consent of the lender. Negative pledge clause clausola di salvaguardia clausola che può essere presente in un accordo di finanziamento o in una emissione di titoli che stabilisce che l'obbligato non possa offrire i beni posseduti in garanzia ad alcuno senza l'autorizzazione dei creditori. Negative pledge clauses are common in unsecured commercial loan document the clause is added to ensure that a borrower, who has already taken an unsecured loan, cannot later take out another loan with a different lender by securing the subsequent loan on the specified assets. Negative pledge noun a promise by a borrower not to place any further liens (=the use of an asset as security for a debt) on its assets floating charges almost always contain negative pledge s to protect the bank's security. Letter of negative pledge the hongkong and shanghai banking corporation limited 140 broadway new york, ny 10005-1196 re: amended and restated credit agreement dated as of september 20, 1996 with anntaylor global sourcing, inc.
A clause in a borrowing agreement whereby the borrower undertakes not to incur new debts or to pledge assets elsewhere without the consent of the lender more fully negative pledge clause. Negative pledge is a provision in a contract which prohibits a party to the contract from creating any security interests over certain property specified in the provision. The word agreement means this negative pledge agreement, as this negative pledge agreement may be amended or modified from time to time, together with all exhibits and schedules attached to this negative pledge agreement from time to time. In connecticut and new york, as in the majority of states, a negative pledge is merely an unsecured promise and gives the lender very little with respect to personal property, article 9 of the. An adjective with negative force is often used with a negative in order to express a nuance of meaning somewhere between the positive and the negative: he was a not infrequent visitor it is not an uncommon sight.
Negative-pledge clause 1 a provision requiring a borrower, who borrows funds without giving security, to refrain from giving future lenders any security without the consent of the first lender. While a negative pledge is not a security instrument, it can be useful in the right context so long as a lender recognizes its limitations the advantages of a negative pledge include its flexibility and the ease with which it can be incorporated into any finance agreement. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain negative pledge agreements each dated as of january 30, 2003 between borrower and bank, and acknowledges, confirms and agrees that said negative pledge agreement shall remain in full force and effect.
Pledge ® multi surface everyday cleaner with glade ® lavender & peach blossom pledge ® multi surface antibacterial everyday cleaner commercial line pledge ® lemon clean. Negative pledge agreements view, purchase and download examples of actual negative pledge agreements for $35 each whether you are a business professional or a lawyer, gain competitive intelligence and reference actual terms when negotiating a deal or drafting an agreement. Definition of negative pledge clause: a contract or agreement that the borrower holds if the company issues stocks or bonds that have a negative effect on the shareholders. A negative pledge is a promise the borrower makes to refrain from adding additional liens against specific or all of the assets of the borrower.