Which one of the following is the clause that prevents a bond issuer from issuing new debt that has seniority over current debt?

Question

Quizplus · Accepted Answer

A negative pledge is a clause in a bond agreement that prevents the issuer from pledging any assets to other lenders that would rank higher than the existing bondholders in terms of priority of repayment. This effectively prevents the issuer from issuing new debt that has seniority over current debt.

Which One of the Following Is the Clause That Prevents