NEGATIVE PLEDGE CLAUSE Definition

Bookmark and Share

NEGATIVE PLEDGE CLAUSE is a covenant or promise in an indenture agreement that states the corporation will not pledge any of its assets if doing so would result in less security to the debt holders covered under the indenture agreement. Also called covenant of equal coverage.

Learn new Accounting Terms

CHECK REGISTER is the journal for recording payments by check.

ECONOMIC ORDER QUANTITY is the order quantity that minimizes total inventory costs. A total inventory cost is the sum of ordering, carrying and stock-out costs.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.