Escrow & Title
What is a 'release clause' in a Rhode Island blanket mortgage?
AA clause releasing the borrower from personal liability
BA provision allowing individual parcels to be released from the mortgage lien upon partial repayment✓ Correct
CA clause releasing the lender from foreclosure liability
DA provision releasing the escrow funds to the seller
Explanation
A release clause in a blanket mortgage allows a borrower (often a developer) to have individual lots or parcels released from the mortgage lien upon paying a specified portion of the loan, enabling lots to be sold free and clear.
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