Pioneer Federal Savings & Loan Ass'n v. Reeder

GRIMES, Judge.

Once again we are called upon to interpret the application of a mortgage due on sale clause.

On August 2, 1973, Robert H. and Mary L. Reeder (Reeders) executed and delivered to Pioneer Federal Savings and Loan Association (Pioneer Federal) a promissory note for $520,000 secured by a mortgage of certain real property. The mortgage incorporated the provisions of a “master form of mortgage” previously recorded by Pioneer Federal. Paragraph 11 of the master mortgage contained a due on sale clause which read as follows:

That if conveyance should be made by the Mortgagor of the premises…