Escrow & Title
In Montana, a 'subordination clause' in a mortgage or deed of trust allows:
AThe borrower to pay off the loan ahead of schedule
BA senior lien to be moved to a lower priority to allow a new loan to take first position✓ Correct
CThe lender to accelerate the entire loan balance
DThe borrower to substitute collateral
Explanation
A subordination clause allows an existing lien holder (senior position) to agree to subordinate their lien to a new loan, putting the new loan in first position. This is often used in construction lending or refinancing.
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