"Due on Sale" Clauses, by Which Assignment of Mortgages Is

question 40

True/False

"Due on sale" clauses, by which assignment of mortgages is prohibited, are illegal.

---

Definitions:

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross profit but before incomes and taxes are deducted.

Return on Total Assets

A financial ratio that measures the profitability of a company in relation to its total assets.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement as a non-operating expense.