Question

A developer received a loan that covers five parcels of real estate and provides for the release of the mortgage lien on each parcel when certain payments are made on the loan. This type of loan arrangement is called a

A)blanket loan.
B)wraparound loan.
C)purchase money loan.
D)package loan.

Answer 1

A blanket loan is a type of loan arrangement where a developer receives a loan that covers multiple parcels of real estate and provides for the release of the mortgage lien on each parcel when certain payments are made.

Step-by-step explanation:

The type of loan arrangement described, where a developer receives a loan that covers multiple parcels of real estate and provides for the release of the mortgage lien on each parcel when certain payments are made, is called a blanket loan.