Finance
A 'negative pledge' clause in a NC commercial loan agreement prohibits the borrower from:
AMaking scheduled loan payments
BPledging the mortgaged property as security for additional loans without the lender's consent✓ Correct
CImproving the property
DRenting the property to commercial tenants
Explanation
A negative pledge clause (found in some commercial loan documents) restricts the borrower from encumbering the collateral with additional liens without lender consent, protecting the lender's security position.
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