Balloon Payment - Where the final installment payment on a note is greater than the preceding installment payments and it pays the note in full, such final installment is termed a balloon payment. Beneficiary - (1) One entitled to the benefit of a trust; (2) One who receives profit from an estate, the title of which is vested in a trustee; (3) The lender on the security of a note and deed of trust. Blanket Encumbrance - A single mortgage or trust deed which covers more than one piece of real estate. Bona Fide - In good faith, without fraud or deceit; authentic; sincere. Breach - Violation of an obligation in a contract.