FinanceQuestion 75 of 120
The clause in a mortgage that allows the lender to demand full repayment if the borrower defaults is the:
a.Acceleration clause
b.Defeasance clause
c.Subordination clause
d.Habendum clause
Explanation
An acceleration clause lets the lender declare the entire remaining balance due upon default, such as missed payments. It is a necessary step before foreclosure. A defeasance clause, by contrast, requires the lender to release the lien once the loan is paid in full.
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