Property Management

In South Carolina, what is 'yield maintenance' in commercial real estate finance?

AMaintaining the property to ensure it continues to yield crops
BA prepayment penalty that compensates the lender for the yield they would have earned had the loan not been prepaid✓ Correct
CA property management strategy to maximize rental income
DA requirement that commercial properties maintain a minimum income level

Explanation

Yield maintenance is a type of prepayment penalty in commercial mortgages that requires the borrower to pay the lender an amount equal to the present value of the remaining interest payments, ensuring the lender receives the same yield as if the loan continued to maturity.

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