Negative Pledge Agreement

In order to offer the best chances of success to a subsequent third party, the existence of the negative pledge should be made public by filing/registering a notification on the existence of the negative pledge at the relevant UCC registration points for negative pledges relating to personal property and in the land registers applicable to negative pledges relating to immovable property. However, as stated above, such a registration communication also does not guarantee the success of the secured creditor vis-à-vis subsequent third parties. If the borrower violates the negative deposit clause, he is liable for the breach of contractIn case of interruption of the covenantAn Covenant infringement is committed when the issuer of a debt instrument violates a Covenant which is one of the conditions to which the debtor has committed. The appropriate remedy in the event of an infringement may be either an injunction, a specific benefit or damages. A negative order is a contractual provision that, in a contract, prohibits the debtor from creating security rights in certain assets. The contractual regime aims to protect unsecured creditors by ensuring that debtors can only use unconconscited assets as collateral. As a general rule, the negative mortgage allows the borrower to take out future secured debts, either as long as the transaction is an authorized exception or as long as the beneficiary of the existing negative pledge is insured in the same way at the time of the appearance of the new secured debt. .

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