Repossessions: 3.8.6 Force-Placed Automobile Insurance As a Future Advance
Car and manufactured home loans often state that the collateral secures not only that loan, but any preexisting loan with that creditor or any future loan with that creditor or both. A clause stating that the collateral secures preexisting loans in addition to the current loan is known as a preexisting or antecedent debt clause, while a clause stating that the collateral for the current loan also secures future loans or future advances on the current loan is referred to as a future advance clause.582