negative pledge

listen to the pronunciation of negative pledge
English - Turkish
(Kanun) menfi rehin
English - English
A type of loan or loan condition in which the borrower agrees with the lender not to allow any other lender or creditor to rank ahead for payment in the event of a liquidation. Such a loan is unsecured (ie. not backed by a charge over specific assets). Hailed as a great innovation when developed in the 1970s, but by the end of the 1980s had become a dirty word
promise not to mortgage property
negative pledge

    Hyphenation

    neg·a·tive pledge

    Turkish pronunciation

    negıtîv plec

    Pronunciation

    /ˈnegətəv ˈpleʤ/ /ˈnɛɡətɪv ˈplɛʤ/

    Etymology

    () The idea (and hence presumably the name) developed in the United States, and then went global. (Reference: Trevor Sykes, The Bold Riders, second edition, 1996, ISBN 1-86448-184-6, page 8.)
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