Negative Guarantee Of Legal Issues Of International Project Financing Research

Worldwide large-scale projects are on the rise. International project financing is the main mode of financing for these projects. There are many risks in International Project Financing. Among these risks, business risk is the main risk. One way to prevent the business risk is financing security.Financing security divides into positive and negative security. Both positive security and negative security are prevention of commercial risks in international project financing.Positive security includes credit guarantee and security interests. Negative security is the assurance to the lender that the borrower does not engaged in certain behavior.This article will discuss mainly negative pledge clause of the floating mortgage in International Project Financing.This article includes five chapters:Chapter I introduces the development and risks of international project financing.Chapter II briefly analyzes the guarantees of international project financing.Chapter III illustrates negative pledge related to floating mortgage in guarantee of international financing. This chapter mainly explains the effect, application and relief of negative pledge.Chapter IV compares practices associated with negative pledge among different countries.Chapter V elaborates the practices and legislation about negative pledge in China. At the end the article, there are legislative proposals for negative pledge.