Negative Pledge

A Negative Pledge is an unsecured loan agreement’ provision requiring the borrower to get the current lender’s consent before obtaining any secured loan. An example is a bond indenture clause prohibiting the bond issuer from pledging these assets to a third party as it reduces the security level for the bondholders.


Negligence is conduct that falls below the standards of behaviour expected from citizens to protect others from harm. A person has acted negligently if they have ignored their duty of care expected of them as a reasonable person. Negligence can be harmful actions or a failure to act.


To discuss or arrange a sale or bargain; to arrange the preliminaries of a business transaction. Also to sell or discount negotiable paper, or assign or transfer it by endorsement and delivery.