A more thorough explanation:

A cross-collateral clause is a provision in an installment contract that allows the seller to repossess not only the specific item sold but also any other items purchased from the seller on which a balance remains due if the buyer defaults on their payments. This clause is also known as a dragnet clause.

Let's say you buy a car from a dealership and finance it through them with an installment contract. The contract includes a cross-collateral clause. A few months later, you decide to buy a motorcycle from the same dealership and finance it through them as well. You still owe money on both the car and the motorcycle when you miss a payment. The dealership can repossess not only the motorcycle but also the car because of the cross-collateral clause in the contract.

This clause can be risky for buyers because it gives the seller more power to repossess their property. It's important to read and understand all the terms and conditions of an installment contract before signing it.