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Simple English definitions for legal terms

cross-collateral clause

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A quick definition of cross-collateral clause:

A cross-collateral clause is a part of a contract that says if someone doesn't pay for something they bought, the seller can take back not only that thing, but also anything else the person bought from the seller that they still owe money on. This is also called a dragnet clause.

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.

cross-collateral | cross-collateralization

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haha suckers!!!!!!!!!!!!!!!!!
20:38
prolly have a lil family and hobbies what loosers
hahah losers like what? you travel? have a life? not me, i'm reading every line of a contract while my seniors go play golf and enjoy like hahaha suckers
20:40
yea inverse perspective, what is fun is not fun and what is not fun is fun
20:40
you get it.
i wanna be able to travel a ton too
my ex just posted a harry potter related joke i think i dodged a bullet
20:41
Im only going to law school to recruit members for the revolution
20:41
nice where u wanna go? yea bullet dodged fr
can we join even if we're not at ur school
20:44
yeah but youd be in a different chapter
20:44
are we revolting against people who do not use their signal whilst driving?
20:44
We’re revolting against the man, man
20:45
Power does not flow from the sleeve of a judges robe to paraphrase
fuck yeah i'm down
MrThickRopes
20:46
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MrThickRopes
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MrThickRopes
20:46
PUT DA BEAT ON BRUH
20:48
Aight yall can join but I call dibs on being assassinated
MrThickRopes
20:49
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MrThickRopes
20:49
Up in da club
MrThickRopes
20:49
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the unction
20:55
just got a DUI while drinkin an NA beer in my car
20:55
someone help is some1 a hoya lowya here?!
MrThickRopes
21:03
Yoooo wtf
21:03
jk ropes but I do got ops fr
MrThickRopes
21:12
Me too bruh they praying on my downfall fr
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bruh i got ppl tryna make my head a brain smoothie
21:19
serve me with some margarita mix and agave sweetener and summ
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