DUE-ON-ENCUMBRANCE CLAUSE

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 ¡ì 1701j¨C3. [Cases: Mortgages 403. C.J.S. Mortgages ¡ì¡ì 102, 506, 509¨C510, 512, 519, 521.]
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