Final answer:
The correct answer is C. Release clause, which allows portions of a property to be released from a mortgage lien before the entire loan is repaid.
Step-by-step explanation:
The correct answer to this question is C. Release clause. A release clause is a condition needed by a borrower with a blanket encumbrance on a subdivision to allow portions of the property to be released from the mortgage lien before the entire loan is repaid.
For example, let's say a developer buys a large piece of land and takes out a loan to finance the construction of houses on that land. The loan is secured by a blanket encumbrance on the entire subdivision. However, the developer may want to release individual lots from the mortgage lien as they are sold to buyers. In this case, a release clause would be included in the loan agreement to allow the developer to release portions of the property from the mortgage lien once certain conditions are met, such as selling a certain number of lots or making a specified payment.