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Business Definition for: dragnet clause
dragnet clause
See also
cross-collateral
dragnet clause
a provision in a mortgage that pledges several properties as collateral , potentially including newly acquired property owned by the borrower. A default on one mortgage constitutes a default on the one with the dragnet.
Example: A real estate investor was in financial straits. She failed to pay a certain mortgage . The holder of the mortgage on a different property, which was not in default , enforced the dragnet clause in its mortgage by foreclosing .
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
