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This Coming Thursday
Are “cross-collateral clauses” enforceable?
Regardless of those who answer with an emphatic “Yes! I use them all the time!” or those who answer with an equally emphatic “No! Our courts won’t allow them!” the real answer is “Maybe.” The enforceability of cross-collateral clauses depends on a number of factors, any one of which, if poorly handled, can turn a great clause into something that could get your financial institution sued.
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