Question

A mortgage in Florida may not contain both a prepayment penalty clause and which of the following?

a) Acceleration clause
b) Amortization schedule
c) Due-on-sale clause
d) Escrow account provision

Answer 1

A mortgage in Florida may not contain both a prepayment penalty clause and a due-on-sale clause.

Step-by-step explanation:

A mortgage in Florida may not contain both a prepayment penalty clause and a due-on-sale clause.

A prepayment penalty clause is a provision in a mortgage contract that allows the lender to charge a fee if the borrower pays off the loan before a certain period. A due-on-sale clause, on the other hand, requires the borrower to pay off the remaining balance of the loan if the property is sold to a new owner.

Therefore, if a mortgage contains a prepayment penalty clause, it cannot also have a due-on-sale clause. The other options in the question are not mutually exclusive with a prepayment penalty clause in a mortgage.