Property Ownership

In Minnesota, what is a 'partial release' clause in a blanket mortgage?

AA clause allowing partial prepayment of the mortgage
BA provision that allows individual parcels to be released from the lien upon payment of a specified amount✓ Correct
CA clause that allows the lender to partially foreclose on the property
DA provision allowing the buyer to occupy the property before closing

Explanation

A blanket mortgage covers multiple parcels. A partial release clause allows individual parcels within the blanket mortgage to be released from the lien as the borrower pays down a portion of the loan. This is important for developers in Minnesota who build homes in a subdivision financed under one blanket construction loan.

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