Question

define the term credit and how credit pledge negative and positive law for producers with examples​

Answer 1

Answer:

Credit refers to an agreement to purchase a good or service with the express promise to pay for it later. This is known as buying on credit. ... The amount of money a consumer or business has available to borrow—or their creditworthiness—is also called credit.

A negative pledge clause is a type of negative covenant that prevents a borrower from pledging any assets if doing so would jeopardize the lender’s security. This type of clause may be part of bond indentures and traditional loan structures.

As a way to ensure repayment of the loan, the lender can demand certain forms of security. ... Another option is to include a clause that security will be provided on the first request of the lender (such an obligation is commonly referred to as a 'positive pledge' in the Netherlands).

Answer 2

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• Interest rate, collateral and documentation requirement and the mode of repayment, together is called the terms of credit. It may vary depending on the nature of the lender and the borrower

• A negative pledge clause is a type of negative covenant that prevents a borrower from pledging any assets if doing so would jeopardize the lender’s security. This type of clause may be part of bond indentures and traditional loan structures

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