A Bond Indenture Clause That Prohibits a Company from Issuing

question 86

Multiple Choice

A bond indenture clause that prohibits a company from issuing new debt that has seniority over current debt is the _________ clause.

• A) sinking fund
• B) first-in-line
• C) debt prohibition
• D) negative pledge
• E) affirmation

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Definitions:

Peace Ship

Henry Ford's 1915 initiative to send a ship to Europe carrying American activists in an effort to negotiate an end to World War I; it was met with skepticism and did not achieve its goal.

Henry Ford

An American industrialist and founder of the Ford Motor Company who revolutionized factory production with his assembly line methods, significantly impacting the automobile industry.

Negotiated Settlement

A resolution reached through direct negotiations between parties, often used in legal disputes, conflicts, or diplomatic disagreements.

Slavic Ally

Refers to a country or ethnic group of Slavic origin that acts as a cooperative partner or supporter to another entity in political or military endeavours.