negative pledge definition

  • noun:
    • a form of loan or loan symptom in that the debtor will abide by the lending company to not allow other loan provider or creditor to position forward for repayment in the case of a liquidation. These types of that loan is unsecured (ie. not supported by a charge over particular assets). Hailed as an excellent innovation when created in 1970s, but by the end of 1980s had become a dirty term.
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