A bank holds a mortgage on land to secure a nonrecourse loan to a partnership. After the partnership defaults, may the bank foreclose on its mortgage?

• A. Yes, because the mortgage secured repayment of the loan and the loan was in default.
• B. No, because a mortgage is unenforceable unless there is personal liability on the obligation for which the mortgage serves as security.
• C. Yes, because the loan proceeds were used to purchase the parcel of land.
• D. No, because a mortgagee may enforce its mortgage without first suing the mortgagor on the underlying obligation.

Answer: (A)