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Negative Pledge
(redirected from Negative Pledge Clauses)

   Also found in: Wikipedia 0.01 sec.
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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