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.]