Common use of Release of the Borrower Clause in Contracts

Release of the Borrower. The Lender will release the Borrower from the Borrower’s obligations under the Contract and to pay the Loan, and, if applicable, the Lender will also release any Surety from their suretyship of this Contract, if: (i) the Lender gives written approval to the Borrower to transfer title to the Hypothecated Property, (ii) the transfer is to a person or persons other than the Borrower so that the Borrower will not retain any ownership interest in the Hypothecated Property after the transfer of title takes place; (iii) the person or persons to whom the Borrower transfers the Hypothecated Property and any Surety the Lender requests enter into an agreement to pay the amounts secured by the Contract and Agreements and to perform the obligations in the Contract and Agreements; and (iv) the Borrower provides the Lender with proof of registration of a transfer/deed of the Hypothecated Property to the approved person or persons.