Which of the following is a definition of an "alienation" clause in a loan agreement?

An alienation clause in a loan agreement is defined as a provision that allows a lender to demand full payment of the outstanding loan balance upon the transfer of ownership of the property. This means that if the borrower sells or transfers their interest in the property, the lender has the right to call the loan due immediately. This clause protects the lender’s interest by ensuring that the new owner is either qualified to take over the loan or that the lender is compensated by receiving the full balance of the loan at the time of transfer.

The other options lack the specific language of an alienation clause: for instance, requiring insurance, restricting property use, or allowing a sale of property without lender consent do not capture the essence of this clause's function, which is fundamentally about the lender's rights and protections upon ownership changes.