Finance
In Alaska, the 'title theory' of mortgages (as distinguished from the 'lien theory') would mean that:
AThe borrower keeps title and the lender has a lien
BThe lender holds legal title to the property until the loan is repaid✓ Correct
CTitle transfers to the government during the loan term
DTitle stays with the title company during the loan term
Explanation
In title theory states, the lender holds legal title to the mortgaged property during the loan term, with the borrower holding equitable title. In lien theory states (like most modern states), the borrower retains legal title and the lender has only a lien (security interest). Alaska generally follows lien theory.
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