FinanceIntermediateAlaska Exam

In Alaska, which type of mortgage clause allows the lender to demand full repayment of the loan upon the property's sale?

ADefeasance clause
BAcceleration clause
CDue-on-sale clauseCorrect
DSubordination clause

Why Due-on-sale clause Is Correct

Answer C: Due-on-sale clause

A due-on-sale clause (also called an alienation clause) allows the lender to demand full repayment of the outstanding loan balance when the borrower transfers ownership of the property.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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