Which of the following is the purpose of a 'negative pledge' clause on a company charge?
To prevent the company from issuing a subsequent charge on the same asset
To prevent the company from selling the asset without the chargee's permission
To prevent the company from using the asset without the chargee's permission
To ensure the company pays the proceeds from the sale of the asset to the chargeholder
A 'negative pledge' clause prevents the company from issuing subsequent charges on the same asset.
