Finance
In Louisiana, which clause in a mortgage allows the lender to demand full repayment if the property is sold or transferred without lender approval?
APrepayment clause
BEscalation clause
CDue-on-sale (alienation) clause✓ Correct
DDefeasance clause
Explanation
The due-on-sale clause (also called an alienation clause) allows the lender to accelerate the loan and require full repayment if the borrower sells or transfers the property without lender consent. This prevents loan assumption without lender approval.
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