Webv. t. e. 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. … WebA negative pledge provision protects the lender by prohibiting the borrower from granting a lien or a security interest to another creditor which would: Reduce the amount of security or collateral available to the lender. Give such other creditor priority on the borrower’s …

Examples of negative pledge clauses in contracts Afterpattern

WebA negative pledge is an undertaking granted by the borrower and, if applicable, obligors not to create, or permit to subsist, any security over any of its assets. The generally accepted … WebA negative pledge might commonly read: 'The Borrower shall not create or permit to subsist any security over any of its assets.' In the case of groups of companies, the clause would often be extended to include all group members (but a borrower might seek to limit this restriction to specified material subsidiaries or to obligors). haverfordwest pembrokeshire restaurants

Pledge Definition Legal Glossary LexisNexis

WebThe application of negative pledge clause to offset the weakness of floating charge can be seen in the case of Re Connolly Bros Ltd (No 2) [1912], a company issued debentures to … WebSep 17, 2014 · Practical resources ... of a negative pledge when recording particulars of a charge created by a company and that delivering details of a negative pledge to the … WebNegative pledge. 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 … born wess shoes