#962
If there is a provision in a mortgage that allows the lender to declare the entire loan balance due upon default of the loan by the borrower this provision is known as an exculpatory clause.
Is this true or false ?
Take your time. The solution is posted below the wildlife photo.
A. False
The clause described in the question is known as an acceleration clause and it will allow the lender to declare the entire balance of a debt due and payable instantly if the borrower defaults on the loan.
An exculpatory clause is a clause written into a contract that will relieve a party to the contract of default or problems if particular problems or defaults arise that are addressed in the contract.
It must be noted exculpatory clauses are not always enforceable.
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