Grayson is a private investor who is willing to lend a second mortgage to your borrower. In preparing the commitment letter Grayson advis you that he wishes to make the mortgage partially open. Grayson wants the borrower to pay a penalty equal to the difference between the rate that Grayson is charging and, if rates go down, the rate at which Grayson will be able to relend his money. He tells you that because he doesn't know how to word this he needs your help. Given this scenario what type of clause will you tell the private investor to include in the commitment letter?

Select one:

a$.$ Portability clause

b$.3$ month interest clause

c$.$ Interest rate differential clause

d$.$ Fully open clause