Escrow & Title
In Oregon, what is a 'release clause' in a blanket mortgage or deed of trust?
AA clause releasing the borrower from liability after the loan matures
BA provision allowing individual parcels to be released from the lien upon payment of a specified amount, used in subdivision development financing✓ Correct
CThe lender's right to call the entire loan if one payment is missed
DA clause releasing the title company from responsibility after closing
Explanation
A release clause in a blanket deed of trust or mortgage allows the borrower to free (release) individual parcels from the lien upon payment of specified amounts. This is used in Oregon subdivision development financing where a developer mortgages the entire development; as each lot is sold, the developer pays down the blanket loan and receives a partial release of that lot's lien.
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