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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On Monday, December 12, the month of the year, 2561 February 26, 2018 the Ministry of Commerce in collaboration with the Economic Research Institute for ASEAN and East Asia (ERIA) organized a capacity building workshop on the formulation of trade liberalization: positive transfer table service promised to table a negative pledge ( "T rade In Services Liberalization Method: Migrating from Positive to negative Scheduling (Positive to Negative List)"), chaired by HE Health Sophea, Commerce Under Secretary Jeremy Gross, head of the Institute for Capacity Building ERIA Ms.
The main two supporting factors for this rating are first a security package which provides 100 per cent coverage of the Sukuk issue amount and second a negative pledge on other real estate assets covering a further 20 per cent of issue value.
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.
negative pledge, limiting the capacity of the holding company to raise
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.
Con el objeto de dar claridad respecto de algunas figuras propias del sistema anglosajon comunmente utilizadas en la documentacion del Project Finance, se hara referencia a las clausulas Negative Pledge y Cross Default o incumplimiento forzado, al igual que al negocio juridico conocido como Trust.
Among other standard conditions, the trust certificates benefit from a negative pledge, a change of control, and a cross-default provision.
This could not be done without permission from the beneficiaries of the negative pledge, but the bond contracts had no mechanism for that permission to be given short of a unanimous vote of the affected bondholders, which was impossible to obtain as a practical matter.
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.
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.
a) A negative pledge is often provided in order to obtain financing from a lender.