Jerry Bright does business as the Grey House Center, a “B” l…
Jerry Bright does business as the Grey House Center, a “B” level retail strip center in Martin, Florida. Mr. Bright previously borrowed $500,000 from Zadegan & Co. Commercial Lenders to finance 65% of his purchase. The mortgage from Zadegan & Co. Commercial Lenders to Jerry Bright contains a standard due-on-sale clause. While the mortgage is in-place Jerry Bright enters into a purchase and sale agreement with Necar Carlton Partners, an Ohio general partnership. Following the contractual due diligence period, Necar Carlton Partners has decided to move forward to closing. Jerry Bright’s and Necar Carlton Partners’ attorneys drafted the closing documents, and obtained Zadegan & Co. Commercial Lenders’ wiring instructions. Based on just the information presented (and nothing else), as soon as Jerry Bright’s attorney began reviewing the closing documents packages, Jerry Bright violated the _____________________ clause of Zadegan & Co. Commercial Lenders’ loan documents. (Select one answer only.)