James purchases a home in Jackson, Mississippi and finances the purchase through a local bank. The loan is secured using the standard Mississippi security instrument. Which of the following correctly identifies the THREE parties involved in that security instrument?
Correct Answer
C) Trustor, trustee, and beneficiary
Mississippi's primary security instrument is the deed of trust (Miss. Code Ann. §89-7-1 et seq.), which involves three parties: the trustor (borrower/James), the trustee (a neutral third party who holds title as security), and the beneficiary (the lender/bank). This three-party structure is what distinguishes a deed of trust from a two-party mortgage.
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