Banking · Loan Documentation
In a Term Loan documentation, the clause that legally restricts the borrower from creating any further charges (liens or mortgages) on the primary security assets without the bank's prior written permission is known as:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Security Assignment Clause
- 2Negative Covenant✓
- 3Default Covenant
- 4Pari-passu Clause
Correct answer
Negative Covenant
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