Which of the following is central to a mortgage on commercial property being taken out by a commercial borrower?
A) that the bank has a first claim against the land
B) the morality of the banking institutions lending practices
C) the agreement on the rate of interest and repayment schedule
D) a notice to all other creditors of the existence of the new debt

Question

Quizplus · Accepted Answer

The agreement on the rate of interest and repayment schedule is central to a mortgage on commercial property being taken out by a commercial borrower as it determines the terms of the loan. Choice A is also important as it establishes the bank's priority claim against the property in case of default. Choice B and D may not necessarily be essential to the mortgage process.

Which of the Following Is Central to a Mortgage on Commercial