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Negative Pledge
Negative pledge is a provision in a contract which prohibits a party to the contract from creating any security interests over certain property specified in the provision. Negative pledges often appear in security documents, where they operate to prohibit the person who is granting the security interest from creating any other security interests over the same property, which might compete with (or rank ''pari passu'' with) the security of the first secured creditor under the security document in which the negative pledge appears. In Australia, negative pledge lending took off after a substantial deal by Pioneer Concrete in 1978.Trevor Sykes, ''The Bold Riders'', second edition, 1996, {{ISBN, 1-86448-184-6, pages 7-10 It was a new way of lending, which allowed the banks to lend to corporations, something previously the domain of life insurers. Negative pledge clauses are almost universal in modern unsecured commercial loan documents. The purpose is to ensure that a borrower, havi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contract
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or rescission. Contract law, the field of the law of obligations concerned with contracts, is based on the principle that agreements must be honoured. Contract law, like other areas of private law, varies between jurisdictions. The various systems of contract law can broadly be split between common law jurisdictions, civil law jurisdictions, and mixed law jurisdictions which combine elements of both common and civil law. Common law jurisdictions typically require contracts to include consideration in order to be valid, whereas civil and most mixed law jurisdictions solely require a meeting of the mind ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Security Interest
In finance, a security interest is a legal right granted by a debtor to a creditor over the debtor's property (usually referred to as the ''collateral'') which enables the creditor to have recourse to the property if the debtor defaults in making payment or otherwise performing the secured obligations. One of the most common examples of a security interest is a mortgage: a person borrows money from the bank to buy a house, and they grant a mortgage over the house so that if they default in repaying the loan, the bank can sell the house and apply the proceeds to the outstanding loan. Although most security interests are created by agreement between the parties, it is also possible for a security interest to arise by operation of law. For example, in many jurisdictions a mechanic who repairs a car benefits from a lien over the car for the cost of repairs. This lien arises by operation of law in the absence of any agreement between the parties. Most security interests are grant ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pari Passu
''Pari passu'' is a Latin phrase that literally means "with an equal step" or "on equal footing". It is sometimes translated as "ranking equally", "hand-in-hand", "with equal force", or "moving together", and by extension, "fairly", "without partiality". Etymology :* '' pari'' is the ablative singular masculine (since it must grammatically agree with ''passu'') of the adjective ''par'', "equal". If it were nominative, "an equal step" it would be ''par passus''. :* ''passu'' is the ablative of the Latin noun ''passus'', "step". This term is commonly used in law. ''Black's Law Dictionary'' (8th ed., 2004) defines ''pari passu'' as "proportionally; at an equal pace; without preference". Usage In inheritance In inheritance, a ''pari passu'' (''per capita'') distribution can be distinguished from a ''per stirpes'' (by family branch) distribution. For example, suppose a testator had two children A and B. A has two children, and B has three. * If the testator leaves his or her en ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Secured Creditor
A secured creditor is a creditor with the benefit of a security interest over some or all of the assets of the debtor. In the event of the bankruptcy of the debtor, the secured creditor can enforce security against the assets of the debtor and avoid competing for a distribution on liquidation with the unsecured creditors. In most legal systems, secured creditors also have the option of releasing their security and proving in the liquidation, although, in practice, they would rarely do so. Any creditor with a lien on all or a portion of an asset, such as a mortgage on real estate or a bank loan, is said to be a secured creditor. See also * Preferential creditor A preferential creditor (in some jurisdictions called a preferred creditor) is a creditor receiving a preferential right to payment upon the debtor's bankruptcy under applicable insolvency laws. In most legal systems, some creditors are given p ... References {{finance-stub Credit Bankruptcy Insolvency ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hanson Australia
Hanson Australia is a premixed concrete, aggregates and precast company. Founded in 1949 as Pioneer Concrete and later re-branded to Pioneer International, it was taken over by Hanson in 1999. History In 1949, Pioneer Readymix was founded in St Peters, Sydney. In 1954 it was purchased by Tristan Antico and Kelvin Conley. In 1954 a concrete plant was acquired in Canberra. In 1959 it was listed on the Sydney Stock Market as a public company. As well as acquiring further concreting businesses, it diversified into building materials products. In 1961, Pioneer purchased a pre-mix concrete plant in Hong Kong. In 1962, it commenced operations in the United Kingdom, followed in 1963 by Israel and 1964 by Italy. In 1965, it formed a joint venture with Shell Australia to enter the asphalt manufacture and supply industry. In the same year, the company diversified into aggregate quarrying in Hong Kong. In 1967, Pioneer acquired FW Williams Holdings that had plastic manufacturing operatio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trevor Sykes
Trevor William Sykes (born 14 September 1937) is an Australian finance journalist who until his retirement in 2005 wrote the Pierpont column in the Australian Financial Review ''The Australian Financial Review'' (abbreviated to the ''AFR'') is an Australian business-focused, compact daily newspaper covering the current business and economic affairs of Australia and the world. The newspaper is based in Sydney, New Sou .... He also wrote a number of books on prominent Australian corporate collapses and goings on. Bibliography * * References External links Pierpont web site collecting various articles etc. written by Sykes under that alter-ego 1937 births Australian columnists Living people Place of birth missing (living people) {{australia-writer-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Unsecured Loan
In finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment. Unsecured debts are sometimes called signature debt or personal loans. These differ from secured debt such as a mortgage, which is backed by a piece of real estate. In the event of the bankruptcy of the borrower, the unsecured creditors have a general claim on the assets of the borrower after the specific pledged assets have been assigned to the secured creditors. The unsecured creditors usually realize a smaller proportion of their claims than the secured creditors. In some legal systems, unsecured creditors who are ''also'' indebted to the insolvent debtor are able (and, in some jurisdictions, required) to set off the debts, so actually putting the unsecured creditor with a matured liability to the debtor in a pre-p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Event Of Default
Default is the occurrence of an event or circumstance against which a party to a contract seeks protection. For example, a contract may state that the recording of a lien against certain property is a default. If the default is left uncured after notice and the passage of time, it may ripen into an event of default, which creates in the non-defaulting party certain rights, such as acceleration of a debt or the right to exit a contract. In a revolving credit facility, the occurrence of an event of default normally also allows the lender to cancel any obligations to make further loan advances. There are three types of event of default: * payment default, i.e. the failure to pay principal or interest when it falls due for payment; * prospective default, when payment is not yet due, but it is clear that it will not be capable of being paid when it does fall due. For example, a payment is due in three months' time but the borrower A debtor or debitor is a legal entity (legal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Second Lien
The vast majority of all second lien loans are senior secured obligations of the borrower. Second lien loans differ from both unsecured debt and subordinated debt. First lien secured loans In the event of a bankruptcy or liquidation, the assets used by the company as security would first be provided to the first lien secured lenders as repayment of their borrowings. To the extent that the value of the assets is sufficient to satisfy the company's obligations to the first lien secured lenders, any additional proceeds from the sale of the pledged assets would then be made available to the second lien lenders as repayment of the second lien loan. With almost no exceptions, a borrower will take a second lien loan either at the same time or after taking a traditional first lien secured loan and the secured lenders will place limitations on the borrower's ability to pledge its assets or borrow additional secured debt. The specific rights of the first lien and second lien lenders ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Seniority (finance)
In finance, seniority refers to the order of repayment in the event of a sale or bankruptcy of the issuer. Seniority can refer to either debt or preferred stock. Senior debt must be repaid before subordinated (or junior) debt is repaid.The American Heritage Dictionary of Businessurt Publishing Company, 2010 Each security, either debt or equity, that a company issues has a specific seniority or ranking. Bonds that have the same seniority in a company's capital structure are described as being pari passu. Preferred stock is senior to common stock in a sale when preferred shareholders must receive back their preference, typically their original investment amount, before the common shareholders receive anything. FpML The seniority of bonds recognised in FpML (Financial products Markup Language) are as follows: See also * Security interest * Secured creditor * Senior debt * Unsecured creditor * Preferential creditor A preferential creditor (in some jurisdictions called a preferred ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pari Passu
''Pari passu'' is a Latin phrase that literally means "with an equal step" or "on equal footing". It is sometimes translated as "ranking equally", "hand-in-hand", "with equal force", or "moving together", and by extension, "fairly", "without partiality". Etymology :* '' pari'' is the ablative singular masculine (since it must grammatically agree with ''passu'') of the adjective ''par'', "equal". If it were nominative, "an equal step" it would be ''par passus''. :* ''passu'' is the ablative of the Latin noun ''passus'', "step". This term is commonly used in law. ''Black's Law Dictionary'' (8th ed., 2004) defines ''pari passu'' as "proportionally; at an equal pace; without preference". Usage In inheritance In inheritance, a ''pari passu'' (''per capita'') distribution can be distinguished from a ''per stirpes'' (by family branch) distribution. For example, suppose a testator had two children A and B. A has two children, and B has three. * If the testator leaves his or her en ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Senior Debt
In finance, senior debt, frequently issued in the form of senior notes or referred to as senior loans, is debt that takes priority over other unsecured or otherwise more "junior" debt owed by the issuer. Senior debt has greater seniority in the issuer's capital structure than subordinated debt. In the event the issuer goes bankrupt, senior debt theoretically must be repaid before other creditors receive any payment. Senior debt is often secured by collateral on which the lender has put in place a first lien. Usually this covers all the assets of a corporation and is often used for revolving credit lines. It is the debt that has priority for repayment in a liquidation. It is a class of corporate debt that has priority with respect to interest and principal over other classes of debt and over all classes of equity by the same issuer. Limitations to seniority Secured parties may receive preference to unsecured senior lenders Notwithstanding the senior status of a loan or other d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
