The conduct of business in the House of Commons and the procedure of the House on public and private business are fixed and regulated by the standing orders of the House1, by numerous resolutions and orders which have been agreed to from time to time and which have continued to be acted upon by the House, and by a series of precedents and customs which are based partly upon the traditions of the House and partly upon the rulings given from time to time from the chair on questions of practice and points of order
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This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge provisions•how negative pledges are viewed in the context of security and quasi-security, and•key considerations when drafting a negative pledge clauseWhere
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