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A mortgage with a “dragnet clause” is an “offer” by the mortgagor to the bank to provide the security of the mortgage for advances of and when they were made. It can be said that the “offer” was not accepted by the bank when a subsequent advance was made because of a new security.
The parties having conformed to the "blanket mortgage clause" or "dragnet clause," it is reasonable to conclude that they also agreed to an implied understanding that subsequent loans need not be secured by other securities, as the subsequent loans will be secured by the first mortgage.
The Security and Pitfall of Dragnet Clauses. Published 01 October 2018, The Daily Tribune. The long and tight reach of a real estate mortgage contract is oftentimes amplified by the so-called Dragnet Clause. Otherwise referred to as Blanket Mortgage Clause, this ostensibly innocent stipulation extends the applicability of a contract of a real ...
Dragnet clause is a clause in a mortgage deed stating that a mortgage secures all the debts that the mortgagor may at any time owe to the mortgagee. It is also known as Anaconda clause or Mother Hubbard clause.
Jul 21, 2009 · Certain Real Estate Mortgage Contract contains a blanket clause also called the “dragnet clause” which has been recognized as valid and legal. This case of a manufacturer and exporter of fuel...
As used in some loan agreements (or security agreements), dragnet clauses give the lender greater credit support from the borrower. These clauses provide that collateral given to secure one loan from a lender to a borrower also secures other obligations of the borrower to the same lender.
As used in some loan agreements (or security agreements), dragnet clauses give the lender greater credit support from the borrower. These clauses provide that collateral given to secure one loan from a lender to a borrower also secures other obligations of the borrower to the same lender.
