Chapter 12 Review

A note requires that the lender be liable for paying the borrower according to the agreed-upon terms of the loan

• True

• False

A mortgage that is recorded after an earlier recorded mortgage is a second mortgage unless a subordination agreement allows the mortgage recorded at the later date to be in higher priority than the earlier recorded mortgage.

• True

• False

The pledging of property as security for repayment of debt is called hypothecation

• True

• False

In lien theory states, the lender retains title to the proeprty

• True

• False

What clause allows the borrower to pay the debt off early without penalty

What clause allows the lender to require immediate payment in full if the property is sold without the lenders consent

What clause requires the lender to release the mortgage lien once the debt is repaid

What clause is the mortgagor's right to reinstate the original repayment terms in the note after the mortgagee initiated the acceleration clause

What clause authorizes the mortgagee to advance the due date of the entire unpaid balance under certain conditions

What clause allows the lender to impose an extra charge if any amount of the loan is paid off early