If the collateral from one loan is used to secure the obligations on another loan,this is called __________,or it is sometimes called a "__________" clause.

Question

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Cross-collateralization is when the collateral from one loan is used to secure the obligations on another loan, and it is sometimes referred to as a "dragnet" clause. The other options do not accurately describe this concept.

If the Collateral from One Loan Is Used to Secure