Land Use & Zoning
A deed of trust on commercial property includes a 'dragnet clause.' This clause:
AAllows the lender to foreclose without court approval
BExtends the lien to cover all current and future obligations owed to the lender by the borrower✓ Correct
CPrevents the borrower from refinancing with another lender
DRequires tenants to vacate upon foreclosure
Explanation
A dragnet (or cross-collateralization) clause in a deed of trust extends the lien to secure not only the specific loan but all debts owed by the borrower to the lender, both present and future.
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