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Simple English definitions for legal terms

dragnet clause

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A quick definition of dragnet clause:

Term: DRAGNET CLAUSE

Definition: A dragnet clause is a legal term that refers to a clause in a contract that allows a lender to seize any and all assets of the borrower, even those not specifically listed as collateral, in the event of a default. This clause is also known as a mother Hubbard clause or a cross-collateral clause. Essentially, it gives the lender the power to cast a "dragnet" over all of the borrower's assets to ensure repayment of the loan.

A more thorough explanation:

A dragnet clause is a legal term that refers to a clause in a contract that allows a lender to seize any and all assets of the borrower in the event of a default. This means that the lender can take any property or assets that the borrower owns, even if they were not specifically pledged as collateral for the loan.

For example, let's say that John takes out a loan from a bank and pledges his car as collateral. The loan agreement includes a dragnet clause. If John defaults on the loan, the bank can not only repossess his car but also seize any other assets he owns, such as his house or savings account.

Another example is a business owner who takes out a loan to purchase equipment and pledges the equipment as collateral. If the loan agreement includes a dragnet clause, the lender can also seize any other assets of the business, such as inventory or accounts receivable, in the event of a default.

The dragnet clause is often used by lenders to provide additional security for loans, but it can be risky for borrowers who may lose all of their assets if they default on the loan.

draftsman | Drago doctrine

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pinkandblue
16:31
fart
IrishDinosaur
16:36
Mich R gang lesgooo
Did anyone else get that random get to know nova email?
HopefullyInLawSchool
17:21
Ya it was sent to all YM applicants
starfishies
17:37
Anyone get the NDLS email inviting you to apply for something even though they haven’t made a decision on your app yet
17:38
Better yet I got the email and I was rejected last month
starfishies
17:38
Wtf
starfishies
17:39
and the deadline is in like a week what is this
any cardozo movement?
BatmanBeyond
18:01
Sent a LOCI via portal, but I'm wondering if email would have gotten me a swifter response
BatmanBeyond
18:02
This whole hold/wait-list/reserve system is a headache
loci already?
BatmanBeyond
18:09
If the odds are like 1-2% I don't think it matters much by the numbers
12:11
I got the same NDLS email
OrangeThing
12:18
I think the user profiles are broken
19:29
Any word out of Notre Dame?
19:29
Only the invitation to apply for LSE
19:29
Anyone received a decision from NDLS?
19:50
when did u guys apply that just heard from umich? they havent even glanced at my app yet
0:30
how am i supposed to spy on people when profile links are broken?
Right. Broken links smh
I've been UR since first/second week of Jan, no updates otherwise, is that a bad sign? At or above median LSAT and above 75th gpa.
The profile links are not working for me. anybody else?
13:18
i’m in the same boat mastermonkey but with lower stats. i hope i hear back by mid march
CheeseIsMyLoveLanguage
13:24
@mastermonkey45: Looking at some of the recent decisions in relation to when they went complete, I'd say it's a good sign. It seems many declines were sent within about 5-6 weeks of completion. Given those were applications that were SENT in January, I'd say that means you're still solidly in the running. :)
14:30
Sent an app to OSU in early december and have STILL not heard back
Give it 4 more weeks at least. Everyone in this chat needs to wait longer.
TrumpSucks
19:58
@steelrift99: Same for me at Arizona
TrumpSucks
20:00
It is frustrating when people are admitted who applied after you. But that’s just part of the game I guess
was friday a umich R wave?
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