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The ___________ clause gives the borrower the right (without obligation) to pay the loan off prior...

  1. The ___________ clause gives the borrower the right (without obligation) to pay the loan off prior to maturity.

  1. Subordination
  2. Exculpatory (Nonrecourse)
  3. Prepayment
  4. Release
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Answer #1

Option 'C' is correct

Prepayment

Prepayment clause is a loan-document provision that permits a borrower to satisfy a debt before it is due date. It is a clause in a bond or mortgage that gives the borrower the privilege of paying the mortgage indebtedness before it becomes due

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