DUE-ON-ENCUMBRANCE CLAUSE

due-on-encumbrance clause.A  mortgage provision giving the lender the option to accelerate

the debt if the borrower further mortgages the real estate without the lender’s consent. • All state

laws  on  the  enforcement  of  due-on-sale  clauses  have  been  preempted,  and  the  subject  is  now

governed  exclusively  by  the  Garn  Act.  12  USCA  §  1701j–3.  [Cases:  Mortgages    403.  C.J.S.

Mortgages §§ 102, 506, 509–510, 512, 519, 521.] [Blacks Law 8th]