Amy Santos does business as the White House Center, a “B” le…
Amy Santos does business as the White House Center, a “B” level retail strip center in Sarasota, Florida. Ms. Santos previously borrowed $650,000 from Bailey Commercial Lenders to finance 75% of her purchase. The mortgage from Bailey to Santos contains a standard due-on-sale clause. While the mortgage is in-place Santos enters into a purchase and sale agreement with Carol Vinick Partners, a California general partnership. Following the contractual due diligence period, Vinick Partners has decided to move forward to Closing. Santos’ and Vinick’s attorneys drafted the Closing Documents, and obtained Bailey’s wiring instructions. Based on just the information presented (and nothing else), as soon as Santos’ attorney began reviewing the Closing Documents packages, Santos violated the _____________________ clause of Bailey’s loan documents. (Select one answer only.)