Negative Pledge


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Negative Pledge

An agreement in which the borrower agrees not to pledge any of its assets as security and/or not to incur further indebtedness.

Negative Pledge

A negative covenant in a bond indenture in which the issuer agrees not to use any of its assets as security for another debt obligation or other liability if doing so would adversely impact the riskiness of the bond. This protects bondholders and also allows the issuer to pay a lower coupon rate.
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Cross default, pari passu, negative pledge (borne by the contracting authority as a liability.
The agreement includes standard terms and obligations and also generally includes the negative pledge, limitations on distributions, financial covenants and event of defaults applicable to the Company's series F through I debentures, with certain modifications, including foreclosure, materialization of a pledge, execution actions, receivership and (subject to certain exclusions) sale of assets, in a specified certain lower amount, a failure to operate in a field which is material to the Company's operations and mergers and changes of formation (with more limited exclusions) will trigger an event of default.
In addition, Al-'Aqar Capital and the REIT have a negative pledge on dealing with the securitised assets.
The terms and conditions of the documentation include a change of control clause, a negative pledge clause and a cross default provision.
The bond includes a negative pledge provision binding Arcelik, as well as financial reporting obligations, a restriction on certain corporate reorganisations, and a covenant limiting transactions with affiliates that do not comply with an arms-length principle.
Among other standard conditions, the trust certificates benefit from a negative pledge, a change of control, and a cross-default provision.
The Bonds will be senior and unsecured obligations of the Company and will be subject to a negative pledge.
The arrangement is subject to a negative pledge, by which DCD is not entitled to create any encumbrances such as a mortgage on the security assets without getting the prior consent of the bank.
The terms and conditions of the bond's documentation, which are applicable under English law, include a negative pledge clause and a cross default and cross acceleration provision.
Among other aspects, the Sukuk benefits from a negative pledge and a cross default clause.
Shorris said, "Today's plan fits with a model of aggressive environmental actions the Port Authority has developed over the last year, from its carbon negative pledge at Stewart International Airport to its Green Pass program for its bridge and tunnel customers.