Escrow & Title

In Hawaii, what is the purpose of a release clause in a blanket mortgage?

AA. To release the borrower from all liability upon sale
BB. To allow individual parcels to be released from the lien upon payment of a specified amount✓ Correct
CC. To waive the due-on-sale clause for qualified buyers
DD. To reduce the interest rate when a parcel is sold

Explanation

A release clause in a blanket mortgage allows the borrower to have individual parcels released from the mortgage lien as they are sold, upon payment of a specified portion of the loan.

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