Contracts
In Tennessee, a 'release clause' in a mortgage allows:
AThe borrower to terminate the mortgage early without penalty
BThe lender to release individual parcels from a blanket mortgage lien upon payment of a specified amount✓ Correct
CThe buyer to cancel the purchase agreement
DThe seller to release the buyer from their obligation
Explanation
A release clause (partial release clause) in a blanket mortgage allows the borrower to have individual parcels released from the lien upon payment of a specified portion of the loan, facilitating the sale of individual lots.
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