Choose the one most appropriate answer for each.
-allows the lender to declare the loan due if the borrower defaults
A)acceleration clause
B)alienation clause
C)assumption
D)chattel mortgage
E)deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination

Question

Quizplus · Accepted Answer

An acceleration clause is a provision in a loan agreement that allows the lender to declare the entire balance of a loan due and payable if the borrower defaults or breaches the terms of the agreement.

Answer: E 
 A deed of trust is a legal document that transfers legal title to real property to a trustee who holds the property as security for a debt between a borrower and a lender. The deed of trust typically contains an acceleration clause, which allows the lender to declare the entire balance of the loan due and payable if the borrower defaults.

Answer: P 
 A power of sale is a clause in a mortgage or deed of trust that gives the lender the right to sell the property if the borrower defaults. This is an alternative to the traditional foreclosure process, which involves a court proceeding.

Answer: Q 
 A promissory note is a written agreement between a borrower and a lender that outlines the terms of a loan, including the amount borrowed, the interest rate, and the repayment schedule. The promissory note is typically secured by a mortgage or deed of trust.

Answer: T 
 Subordination refers to the process of giving one lien or mortgage priority over another. In the context of a mortgage, subordination typically involves a junior mortgage holder agreeing to take a lower priority position than a senior mortgage holder.

Choose the One Most Appropriate Answer for Each