UK Accounting Glossary
A 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.
This is a covenant in a loan agreement in which a borrower promises that no secured borrowings are to be made during the lifetime of the loan or that they will ensure that the loan is secured equally and rate-ably with any new borrowings as explicitly defined.
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This glossary post was last updated: 27th January 2019.