Opinion ID: 1142570
Heading Depth: 1
Heading Rank: 2

Heading: dragnet clause

Text: Each of the three deeds of trust (1981, 1983, and 1985) contained a future advance, or dragnet, clause. This clause comprised the fourth paragraph on the second page of each deed of trust. Each dragnet clause appeared in small, agate-sized print. There were 20 paragraphs of conditions included in each three-page deed of trust document. By its own terms this dragnet clause was optional rather than obligatory because Credithrift, the beneficiary, was to be the sole determiner of whether or not future advances would be made. The dragnet clause appeared as follows: [I]n addition to the indebtedness specifically mentioned above, and any and all extensions or renewals of the same, or any part thereof, this conveyance shall also cover such future and additional advances as may be made to the grantor, or either of them, by the beneficiary, the beneficiary to be the sole judge as to whether or not such extensions or renewals, future and additional advances shall be made. In addition to all of the above, it is intended that this conveyance shall secure, and it does secure any and all debts, obligations, or liabilities, direct or contingent, of the grantor herein, or either of them, to the beneficiary, whether now existing or hereafter arising at any time before actual cancellation of this instrument on the public records of mortgages and deeds of trust, whether the same be evidenced by note, open account, over-draft, endorsement, guaranty, or otherwise.