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Simple English definitions for legal terms

negative-pledge clause

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A quick definition of negative-pledge clause:

A negative-pledge clause is a rule that says if someone borrows money without giving something valuable as security, they cannot give anything valuable as security to someone else without asking the first lender first. It can also be a rule in a contract that says a company cannot use its things as security if it will make the people who lent it money less safe.

A more thorough explanation:

A negative-pledge clause is a provision in a loan agreement or bond indenture that restricts the borrower or issuer from pledging any assets as collateral to another lender without the consent of the first lender or bondholders.

Suppose a company borrows money from Bank A without providing any collateral. The loan agreement may include a negative-pledge clause that prohibits the company from pledging any assets as collateral to another lender without Bank A's permission. This clause protects Bank A's interest in the loan and ensures that it has priority over any other lenders.

A bond indenture may also include a negative-pledge clause that restricts the issuer from pledging any assets as collateral to another lender if it would result in less security for the bondholders. For instance, if a company issues bonds and pledges its assets as collateral to another lender, the bondholders may have less security in case of default. The negative-pledge clause ensures that the issuer cannot take any action that would jeopardize the bondholders' interests.

These examples illustrate how a negative-pledge clause protects the interests of lenders and bondholders by restricting the borrower or issuer from pledging any assets as collateral to other parties without their consent. This clause ensures that the lender or bondholders have priority over other creditors and that their interests are safeguarded.

negative plea | negative prescription

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ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
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