"An examination of the law pertaining to restraints on alienation makes it clear that a 'due-on-sale' clause is not a restraint on alienation and cannot be so considered for any purpose, theoretical or practical."
How later courts described this case
- "An examination of the law pertaining to restraints on alienation makes it clear that a 'due-on-sale' clause is not a restraint on alienation and cannot be so considered for any purpose, theoretical or practical."
- the due-on-sale clause is an important device to balance portfolio return with cost of money, ensuring survival of lending associations
Written by the judges who cited it.
The opinion
Clinton, J.,
concurring.
I concur in the general holding that a “due on sale” clause, such as is contained in the mortgage in this case, is not an invalid restraint on alienation. The opinion contains considerable dicta and arguments from analogy, concerning the full import of which I am uncertain. I, therefore, limit my concurrence.