Opinion No. (1980) Ag

The Attorney General has received your request for an opinion wherein you ask, in effect, the following questions: (1) Does a negative pledge constitute a mortgage, and (2) is such an agreement subject to the mortgage tax provided by Oklahoma law? Initially, it should be mentioned that a negative pledge is a form of agreement often entered into by a bank or other lending institution and a customer of such institution. When such agreement is utilized, it is normally entered into in conjunction with the making of a loan, or other arrangement for the advancement of funds, by the lender to the…