A promise to set aside, dedicate and use exclusively for specified purposes certain categories of property, generally money or other intangibles.
See Also
A covenant that is the opposite of a pledge – a promise not to pledge property, generally money or other intangibles, to any party other than the issuer, a letter of credit provider or other intended beneficiary of the negative pledge.
The party, often called a conduit borrower or conduit obligor, borrowing bond proceeds from the issuer and, in such case, is responsible for making interest payments and repaying principal of the bonds as it becomes due.
