Contracts
In New Mexico, a 'release clause' in a blanket mortgage allows:
AThe lender to foreclose on all properties simultaneously
BIndividual properties to be released from the blanket mortgage as they are sold, allowing clean title to transfer✓ Correct
CThe borrower to add new properties to the blanket
DThe government to claim the properties
Explanation
A release clause in a blanket mortgage specifies a partial paydown amount that releases individual parcels from the mortgage. It is essential in subdivision financing—as lots are sold, each is released from the blanket lien.
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