Get the most out of your questions with IDNLearn.com's extensive resources. Our experts are ready to provide prompt and detailed answers to any questions you may have.
Sagot :
The clause in a mortgage that best describes the requirement of the mortgagee to execute a satisfaction of mortgage when the note has been fully paid is defeasance
What Is Defeasance?
When the borrower sets aside cash or bonds big enough to pay the obligation, the contract's defeasance clause renders the bond or loan worthless on the balance sheet. The outstanding debt and cash balance on the balance sheet are equal, thus they do not need to be reported because the borrower sets aside funds to pay down the bonds.
Buying commercial real estate is one instance of using defeasance. Due to commitments to bondholders having a stake in the commercial mortgage-backed securities (CMBS) that houses the loan, commercial loans may have hefty prepayment penalties in contrast to home mortgages.
To learn more about defeasance from given link
https://brainly.com/question/17253783
#SPJ4
We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com provides the best answers to your questions. Thank you for visiting, and come back soon for more helpful information.
