Which of the following statements is not true about the dragnet clause?
A)It is one specifically phrased to subsume all debts of past or future origins.
B)It operates as a convenience and accommodation to the borrowers as it makes available additional funds without executing additional security documents.
C)It is also known as the "blanket mortgage clause"
D)It is different from a continuing mortgage clause.

Question

Quizplus · Accepted Answer

The dragnet clause is not different from a continuing mortgage clause; rather, it is another term for the same concept. Both terms refer to a provision that allows a mortgage to secure future advances or debts, not just the initial loan amount.

Which of the Following Statements Is Not True About the Dragnet