Finance
The defeasance clause in a mortgage states that when the borrower pays off the loan in full:
AThe interest rate increases
BThe lender must release (defeat) the lien and return legal title if applicable✓ Correct
CThe property is automatically transferred to the lender
DThe borrower must refinance immediately
Explanation
A defeasance clause provides that upon full payment of the mortgage debt, the mortgage lien is defeated (extinguished) and the borrower receives a release of the lien.
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