An alienation clause:

A. Places no restrictions on loan assumption
B. Provides for full payment of the loan in case of default
C. Provides for acceleration of the loan if the property is sold
D. Prohibits sale of the subject property

Question

02-07-2024
Business

Answered

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An alienation clause:

A. Places no restrictions on loan assumption
B. Provides for full payment of the loan in case of default
C. Provides for acceleration of the loan if the property is sold
D. Prohibits sale of the subject property

Sagot :

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-07-02T05:28:33-04:00

Final answer:

Alienation clauses in loan agreements address loan payment terms, default, and acceleration of repayment.

Explanation:

Alienation clause in loan agreements typically provides for full payment of the loan in case of default, ensuring the lender is protected. It may also include provisions for acceleration of the loan if the property is sold, allowing the lender to demand immediate repayment. However, it does not prohibit sale of the subject property, but rather outlines conditions related to loan payment terms.

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Final answer:

Explanation:

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