Independence Federal Savings & Loan Ass'n v. Davis

Robert H. Dudley, Justice.

In 1970 we held that a federal savings and loan association must demonstrate that its security is impaired before it will be permitted to accelerate the maturity date of a loan and declare the entire debt due if the property securing the loan is sold or otherwise transferred. Tucker v. Pulaski Federal Savings & Loan Ass’n, 252 Ark. 849, 481 S.W.2d 725 (1972). Four years later the Federal Home Loan Bank Board issued a regulation which, in part, provides:

[A federal savings and loan] association continues to have the power to include, as a matter of contract between it…