Term:
Waiver of negative pledge; negative pledge waiver
Definition:

Situation whereby a lender waives its right to a negative pledge (i.e. an agreement that the borrow er will not pledge any of its assets if doing so would result in less security to the lender covered under the agreement) in a loan agreement. The Bank normally will not waive its negative pledge rights but did so recently (along with other creditors) in the 1987 Mexican collateralized bond scheme. See negative pledge clause.

Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt
arrow-up icon
Feedback