negative pledges

A form of negative pledge — 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).

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Meanings

noun
  1. pluralplural of negative pledge
Cite this entry
APA

negative pledges. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/negative%20pledges

MLA

“negative pledges.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/negative%20pledges. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “negative pledges,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/negative%20pledges.

Source: negative pledges on Wiktionary, CC BY-SA 4.0.