An investor sells property to a developer with a mortgage. The bank waives the due-on-sale clause if the developer assumes the mortgage. The developer later defaults and the developer’s personal liability is discharged in bankruptcy. May the bank sue the original investor for the note’s default?

• A. Yes, because the developer is no longer liable on the note.
• B. Yes, because the investor remains liable on the note.
• C. No, because the bank waived the “due on sale” clause.
• D. No, because the developer assumed the mortgage.

Answer: (B)