Definition
A negative pledge clause is a type of negative covenant that prevents a borrower from pledging any assets if doing so would jeopardize the lender’s security. This type of clause may be part of bond indentures and traditional loan structures. Key Takeaways A negative pledge clause is a part of a loan contract that prevents the borrower from pledging their assets to another lender.Negative pledge cl
In Panel Profits
In the Panel Profits market platform, Negative Pledge Clause: Definition, How It Works, Pros & Cons applies standard financial concepts principles to comic assets and physical collections.
Common mistakes
Do not infer unobserved prices.