Final answer:
A defeasance clause allows a borrower to pay extra toward the loan balance without facing a prepayment penalty, facilitating early repayment without additional costs.
Step-by-step explanation:
The condition that allows the borrower to pay more than the amount due with no prepayment penalty is known as a defeasance clause. This clause is typically included in the terms of a mortgage or other loans and enables the borrower to repay the loan ahead of schedule without incurring additional costs for doing so. In contrast, a prepayment penalty clause would require the borrower to pay a charge for paying off the loan early, while a lock-in clause prevents the borrower from paying off the loan early. An acceleration clause demands the full repayment of the loan in the event of a default or another specific occurrence, and is not related to voluntary prepayment benefits.