In
addition to repayment terms, many listed financing instruments with
a special clause or loan conditions that the borrower and lender
agreed to honor.
-
Acceleration
clause. A close and
give the lender the right to call all sums immediately due and
payable upon the happening of certain events, such as known
payment of monthly obligations, no payment over the property
taxes.
-
Alienation
(due-on-sale) clause. This gives the lender the right to call the
loan due and payable if the borrower conveys legal title to a new
owner.
-
Subordination
clause. A clause
where the holder of the first deed agrees to become a junior lien
(second).
Prepayment
penalty clause. A
clause that allows a lender to charge the borrower a penalty if the
loan is paid before the scheduled due
date.
