Violation of Any Standard or Restrictive Provision by the Borrower

question 115

Multiple Choice

Violation of any standard or restrictive provision by the borrower gives the lender the right to do all of the following EXCEPT

• A) alter the terms of the initial agreement, for example accelerate the maturity date.
• B) demand immediate repayment.
• C) increase the interest rate.
• D) seize the loan collateral.

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Definitions:

Private Property Rights

Legal rights that grant individuals or entities the ability to own, use, and control personal or real property.

Legal System

The framework of rules, laws, and regulations established to maintain order and protect persons and property.

Market Efficiency

The extent to which market prices fully reflect all available information and adjust to new information swiftly.

Rent Controls

Government-imposed restrictions on the maximum rent charges, intended to keep housing affordable.