A couple default on both a first mortgage with a bank and a second mortgage with a savings and loan association (S&L). They deed the property to the bank in lieu of foreclosure. What is the effect on the S&L's mortgage?

• A. As an interest with priority over the bank's mortgage, the S&L's mortgage is unaffected.
• B. As a junior interest to the bank's mortgage, the S&L's mortgage is completely eliminated.
• C. The S&L cannot foreclose on its mortgage, but must look to the personal liability of the couple.
• D. The bank's acceptance extinguishes the bank's mortgage but leaves the S&L's mortgage unaffected.

Answer: (D)