Additional Grantors and Guarantors Additional Pledged Collateral Clause Samples

This clause establishes the lender's right to require additional parties to become grantors or guarantors and to demand more collateral to secure the loan. In practice, this means that if the lender deems it necessary, new individuals or entities may be added as guarantors, or new assets may be pledged as collateral during the life of the loan. The core function of this clause is to strengthen the lender's security position and mitigate risk if the borrower's financial situation changes or if the lender feels the original collateral is insufficient.