Final answer:
The loan subject to Section 35 designation is a reverse mortgage, which allows homeowners aged 62 or older to convert a portion of their home equity into cash without selling their property or making monthly payments.
Step-by-step explanation:
The loan that is subject to Section 35 designation is the reverse mortgage. Section 35 of the Massachusetts General Laws outlines the requirements and protections for reverse mortgage loans. Reverse mortgages are loans that allow homeowners aged 62 or older to convert a portion of their home equity into cash without having to sell their property or make monthly mortgage payments. They are designed to help seniors access their home equity in retirement.