Finance
What does a 'due-on-sale' clause in a North Dakota mortgage prevent?
AThe lender from increasing the interest rate
BThe borrower from transferring the property without paying off or getting lender approval for the loan✓ Correct
CThe borrower from refinancing the loan
DThe lender from selling the mortgage on the secondary market
Explanation
A due-on-sale (alienation) clause requires the full loan balance to be paid upon sale or transfer of the property, preventing unauthorized assumption of the loan. The lender must approve any transfer or the loan must be paid off.
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