Which clause is described as especially important because it links the promissory note to the mortgage?

• A. Defeasance clause
• B. Acceleration clause
• C. Escalation clause
• D. Satisfaction of judgement

Answer: (A)

The essential idea is that the promissory note is the borrower's promise to repay, while the mortgage secures that debt with the property. The clause that links these two instruments is the defeasance clause. It ensures the mortgage lien remains in place as security for the debt and is released only when the note is paid in full. In other words, once you satisfy the debt, the lien is defeased and the property is no longer encumbered by that loan.

The other options serve different purposes: an acceleration clause speeds up the due date if you default; an escalation clause adjusts payments based on changes in a rate or index; and a satisfaction of judgment relates to settling a court ruling, not tying the note to the mortgage.