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Negative pledge clause |
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Negative pledge clauseA bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders.Negative pledge clause Similar MatchesNegative working capitalNegative working capitalOccurs when current liabilities exceed current assets, which can lead to bankruptcy. Negative NPV tie in projectNegative NPV tie in projectA negative-NPV infrastructure development project that a local government requires of a company engaged in a positive NPV investment project elsewhere in the country. Negative externalityNegative externalityA harmful externality; that is, a harmful effect of one economic agent's actions on another. Considered a distortion because the first agent has inadequate incentive to curtail their action. Examples are pollution from factories (a production externality) and smoke from cigarettes (a consumption externality). Negative income taxNegative income taxA proposal to assist taxpayer with below-subsistence-level incomes. After filing a tax return, such persons would receive a subsidy to bring them up above the poverty level. N Negative AmortizationN Negative AmortizationA condition created when a loan payment is less than interest alone. Even though payments are made on time, the amount owing increases. Further SuggestionsNegative covenantNegative cash flow Negative yield curve negative equity Negative list Negative duration Negative convexity Negative amortization |
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