Also known as a cross-collateralization clause or future advance clause (and sometimes pejoratively as an anaconda clause because it can be used to "put a squeeze" on a borrower). As used in some loan agreements (or security agreements), dragnet clauses give the lender greater credit support from the borrower. These clauses provide that collateral given to secure one loan from a lender to a borrower also secures other obligations of the borrower to the same lender.

Dragnet clauses are common in consumer finance transactions and they can also appear in some business loans, though more frequently in smaller business loans than in larger credits. For more information, see Standard Clauses, Cross-collateralization Clause (Dragnet Clause).