Power-Of-Sale Clause: A clause in a mortgage authorizing the holder of the mortgage to sell the property in the event of the borrowers default. The prodeeds from the public sale are used to pay off the mortgage debt first, and any surplus is paid to the mortgagor. A power-of-sale clause is also found in trust deeds, giving the trustee authority to sell the trust property under certain circumstances.

 

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Power-Of-Sale Clause: A clause in a mortgage authorizing the holder of the mortgage to sell the property in the event of the borrowers default. The prodeeds from the public sale are used to pay off the mortgage d . . . View Full Definition

Lock-In Clause: A condition in a promissory note that prohibits prepayment of the note.

Market Out Clause: A clause that may appear in an underwriting firm commitment that releases it from its purchase requirement if there are negative securities market developments.

Multicurrency Clause: An agreement in the case of a Euro loan that permits the borrower to switch from one currency to another currency on a rollover date.