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

COC see COST OF CONTROL.

TEST COUNT, in inventory audits, is where a test count is inventory counted by the auditors to check the client's count.

Suggest a Term

Enter Search Term

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