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After Acquired Clause

  1.  clause in a mortgage agreement providing that any additional mortgage mortgaging a property acquired by the borrower after the mortgage is signed will be additional security for the obligation
  2.  while such Provisions can help get mortgage bonds a good rating and enable issuing corporations to borrow at favorable rates by precluding additional first mortgages they make it difficult to finance growth through new borrowing
  3.  this gives rise to various Maneuvers to remove after-acquired Clauses such as redemption or exchange of bonds or changes in indenture agreements

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