Maintenance Clause

Definition: A provision requiring a borrower to preserve the condition of the property securing a loan and avoid waste or deterioration.

Example

A homeowner must address serious deterioration that threatens the lender's collateral under the loan agreement.

Keep the distinction clear

Making scheduled payments may not satisfy every loan covenant. Maintenance, insurance, tax, and other obligations can exist alongside payment duties.

Related terms

Mortgage · Insurance Clause · Default

Keep studying

Mortgages: Borrower, Lender, Ownership, and Key Clauses

References: California DRE: real estate glossary · CFPB: mortgage key terms

Pronunciation (US): MAYN-tuh-nunss KLAWZ (capitals show stress)

Pronunciation reference: Merriam-Webster