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mortgage loans clauses section clauses the term used to identify a certain section of a contract or policy there are many different clauses that can come up in regards to a loan the acceleration Clause is the clause in a mortgage or trust deed that stipulates the entire debt is due immediately if the mortgagee defaults under the terms of the contract an alienation clause is the clause in a mortgage or trust deed which asserts the lenders option to require that the balance of the loan becomes immediately due and payable if the property is sold or transferred by the borrower preventing the borrower from assigning the debt without the lenders approval it is also known as a due on sales clause a prepayment clause allows the borrower to pay the debt before the due date a prepayment penalty is a charge imposed on a borrower who pays off the loan early this clause states that the borrower cannot repay a loan prior to a specified date without paying a fee this fee goes towards compensating th
