Valid Restrictive Covenants Will Bind Future Owners of the Land

question 40

Multiple Choice

Valid restrictive covenants will bind future owners of the land if:

• A) they are published in the Federal Register.
• B) there is a notation in the deed referencing the restrictive covenants.
• C) they are published in a newspaper of general circulation.
• D) they are filed with the attorney general of the state in which the land is located.

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Definitions:

Contractual Interest Rate

The interest rate stated on the face of a loan or bond agreement, which represents the percentage of interest that the borrower must pay to the lender.

Premium

The amount paid for an insurance policy or the amount by which a bond or stock sells above its face value.

Discount

A reduction from the usual cost of something, often used to encourage prompt payment or increase sales.

Market Interest Rate

The prevailing rate of interest that borrowers and lenders can expect to transact at in the broader financial market, influenced by supply and demand.