Which of the following is a feature of an alienation clause in a loan agreement?
A. The lender can call the whole note due a payable upon non-payment by the owner.
B. The borrower can prepay the loan without penalty.
C. If the borrower sells the property, the lender may declare the unpaid balance on the note due and payable.
D. It makes assumption of the loan possible by another borrower without the lender approval.
Answer: C. If the borrower sells the property, the lender may declare the unpaid balance on the note due and payable.
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A product has a reorder point of 260 units, and is ordered ten times a year on average. The following table shows the historical distribution of demand values observed during lead time
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