MrThickRopes
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Simple English definitions for legal terms
anaconda clause
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A quick definition of anaconda clause:
An anaconda clause is a type of clause found in a mortgage agreement that states that the mortgage secures all the debts that the borrower may owe to the lender at any time. This means that if the borrower takes on additional debt, it will also be secured by the mortgage. It is also sometimes called a Mother Hubbard clause or a dragnet clause. In an oil-and-gas lease, a Mother Hubbard clause can protect the lessee against errors in the description of the property by providing that the lease covers all the land owned by the lessor in the area. In court, a Mother Hubbard clause can be used to deny any relief not expressly granted in a specific ruling or judgment.
A more thorough explanation:
An anaconda clause, also known as a Mother Hubbard clause, is a provision in a mortgage or lease agreement that secures all debts or properties that the borrower or lessor may acquire in the future.
- In a mortgage agreement, an anaconda clause may state that the property being mortgaged secures all debts that the borrower may owe to the lender, even if those debts are incurred after the mortgage is signed.
- In an oil and gas lease, a Mother Hubbard clause may protect the lessee from errors in the description of the property by stating that the lease covers all land owned by the lessor in the area.
- In a court ruling, a Mother Hubbard clause may be used to deny any relief not expressly granted in the ruling or judgment.
These examples illustrate how an anaconda clause can be used to provide additional security or protection for the lender, lessee, or court ruling. It ensures that any future debts or properties acquired by the borrower or lessor are also covered by the agreement.