What clause allows a lender to release mortgage rights once a mortgage is paid off?

The correct answer is the Defeasance Clause. This clause is a specific provision found in a mortgage agreement that stipulates that the mortgage obligation is nullified once the loan has been fully paid off. Essentially, the defesance clause ensures that the borrower has fulfilled their obligations under the mortgage contract, allowing the lender to release their rights to the property.

The other options relate to different aspects of mortgage agreements. For example, a satisfaction clause is often used synonymously with "defeasance" but may not explicitly ensure the release of mortgage rights in the same manner. An acceleration clause allows lenders to demand full repayment of the loan if the borrower defaults or breaches terms of the agreement. Meanwhile, a subordination clause typically involves changing the priority of claims against a property, which does not pertain to the release of mortgage rights upon payment. The Defeasance Clause clearly addresses the terminus of the lender's rights once the borrower has satisfied their payment obligations, making it the most accurate choice.