Negative Pledges

Abstract

My work, called „Negative Pledges”, aims at some interesting legal beings. Mainly, they are used by banks. Yet, negative pledges may very well be placed in the hands of entities that are not banks; this is pointed out by, e.g., First Wyoming Bank, Casper v. Mudge.

Negative pledges are encountered both in the Civil Law and the Common Law traditions. Of course, it is my view that the Romanian Civil Code embraces the so-called negative pledges, though it does not use such an expression.

At the end of this paper, the abandonment of orthodoxy is highlighted: no explicit conclusions can be noticed.