Great Southern Savings & Loan Ass'n v. Jefferson Properties, Inc.

This case centers around the right of the plaintiff to enforce the Prepayment Penalty Clause of a monthly installment note. The decisive factors will be succinctly stated.

The note contained a “due on sale” provision permitting the plaintiff to accelerate the maturity of the note upon the sale of the property by which it was secured. Through mesne conveyances, that property was acquired by the defendant. The property had been sold. By its letter to the defendant, the plaintiff recited the facts of the sale and the due on sale clause. It then declared: “We are herewith exercising that right…