What is the name of the clause that allows a lender to demand immediate payment if specific criteria related to fraud and misrepresentation are met?

The correct choice refers to a provision that grants lenders the authority to call the entire loan balance due immediately if certain conditions, specifically relating to fraud and misrepresentation, are identified. This helps protect lenders from potential losses that could arise if they discover that crucial information was intentionally concealed or misrepresented during the loan application process.

Typically, the Due-on-Demand Clause is utilized in situations where the lender has a right to request full payment when the terms of the loan contract are violated, particularly through dishonest behavior. This clause is critical in ensuring that lenders can take swift action against borrower misconduct, preserving the integrity of the lending process.

While other clauses, like the Acceleration Clause, do enable lenders to demand full payment under specific circumstances, they primarily pertain to defaults in repayment rather than fraudulent activities. A Prepayment Clause relates to the terms under which a borrower can pay off their loan early, and a Subordination Clause deals with the priority of claims and is not relevant to the demand for immediate payment based on fraud. Thus, the focus on addressing fraud makes the Due-on-Demand Clause the most appropriate answer.