All-monies clause
What is an all-monies clause in a mortgage or guarantee?
ONE OF 209 TERMS · FREE · NO SIGNUP
BY MICHAEL SHANG · SIXTEEN YEARS IN COMMERCIAL BANKING · UPDATED
// THE SHORT ANSWER
An all-monies clause makes a mortgage, a general security agreement or a guarantee secure every amount the borrower owes the bank, now or later and under any facility, rather than one named loan. It lets one security package support an overdraft, a term loan, card limits and guarantees the bank has issued, without new documents for each. It also means that repaying one loan does not free the security: a release waits until everything it secures is repaid, or until the bank agrees otherwise.
BASIS Practitioner judgment from sixteen years in commercial banking, set out in How Bankers Think (Highbank Press, 2026). Every borrower on this site is a composite constructed for teaching, not a client. The market is mid-market commercial lending as practised in New Zealand and Australia; where a convention differs elsewhere, the page says so.
// WORKED IN
// NEXT TO IT
- Personal guarantee release
- General security agreement (GSA)
- Subordination
- Intercreditor agreement
- Loan to value ratio (LVR)
- Forced-sale value
- PPSR (Personal Property Securities Register)
- Retention of title
- Purchase money security interest (PMSI)
- Preferential creditors
- Letter of comfort
- Cross-guarantee
- Floating charge
- Structural subordination
- Recovery waterfall
- First mortgage
- Pari passu
- Loan to security ratio (LSR)
- Lending value
- Valuation reliance letter
- Solicitor's undertaking
- Loss payee (bank's interest noted)
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