FinancingMortgage_instrumentsMEDIUM
In a state using deeds of trust, Sophia Grant borrows money from Harbor Bank to buy a townhouse. The deed of trust names a trustee and states that the lender is the beneficiary under the instrument. Who is the beneficiary?
Correct Answer
B) Harbor Bank, because the lender is the beneficiary
Under a deed of trust, the beneficiary is the lender or creditor whose loan is secured by the instrument. Here, the deed of trust expressly identifies Harbor Bank as the beneficiary.
Answer Options
A
Sophia Grant, because the borrower benefits from the loanB
Harbor Bank, because the lender is the beneficiaryC
The trustee, because it conducts any saleD
The title insurer, because it protects marketabilityWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
beneficiarydeed_of_trustlendertrustee
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