Which clause states that the lender must cancel any claim on the borrower's title when the debt has been satisfied?

The defeasance clause is essential in real estate financing as it ensures that the lender will release their claim on the borrower's title once the debt has been fully paid or satisfied. This clause essentially provides a mechanism for the borrower to obtain full ownership of the property without any further encumbrance from the lender.

When the debt is paid off, the defeasance clause mandates that the lender must execute a document that clears any liens or claims on the title, effectively returning clear title to the borrower. This clause protects the borrower's interests, ensuring that they can claim full ownership without lingering obligations to the lender after meeting their financial commitments.

In contrast, the alienation clause deals with the transfer of property ownership, an acceleration clause allows the lender to demand full repayment upon specific events, and the subordination clause addresses the priority of liens on the property. These clauses do not serve the purpose of cancelling the lender's claim on the title once the debt has been satisfied like the defeasance clause does.