Finance
A Nebraska borrower's loan has a due-on-sale clause. If the borrower transfers the property without lender approval, the lender can:
AOnly increase the interest rate
BDemand immediate full repayment of the loan balance✓ Correct
CSue the new owner for the outstanding balance
DDo nothing — due-on-sale clauses are not enforceable
Explanation
A due-on-sale (alienation) clause requires full loan repayment if the property is transferred. The Garn-St. Germain Act of 1982 made these clauses enforceable on most residential mortgages.
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