Question

A power of sale clause, defeasance clause, acceleration clause, alienation clause, and late charge provisions : A security instrument may include several standard provisions, including;

Answer 1

A power of sale clause, defeasance clause, acceleration clause, alienation clause, and late charge provisions are standard provisions included in a security instrument such as a mortgage.

Step-by-step explanation:

A power of sale clause, defeasance clause, acceleration clause, alienation clause, and late charge provisions are standard provisions included in a security instrument such as a mortgage. These clauses serve various purposes:

• A power of sale clause gives the lender the right to sell the property in the event of default by the borrower.
• A defeasance clause allows for the cancellation of the security instrument once the borrower fulfills their obligation to repay the loan.
• An acceleration clause allows the lender to demand immediate repayment of the entire loan amount if the borrower fails to meet certain terms of the agreement.
• An alienation clause restricts the borrower's ability to transfer ownership of the property without the lender's approval.
• Late charge provisions specify the amount and conditions under which the borrower will be charged a fee for late payment.