Finance
In Montana, a 'release price' in a blanket mortgage is the amount that must be paid to the lender to release a specific parcel from the blanket lien. This is important for developers because it allows them to:
AKeep all parcels encumbered until all are sold
BSell individual lots and provide clear title to each buyer as lots are sold, without paying off the entire blanket loan✓ Correct
CRefinance the remaining parcels at a lower rate
DObtain additional funding without the lender's knowledge
Explanation
The release price provision allows developers to sell individual lots, pay a specified amount to the lender, receive a partial release for that lot, and provide clear title to the buyer—while the remaining unsold lots continue as collateral for the outstanding loan balance.
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