Malouff v. Midland Federal Savings and Loan Ass'n

This appellate proceeding was transferred on motion from the Court of Appeals in view of the significant public interest in the subject matter of the appeal and because of the major significance of the legal principles involved. 1969 Perm. Supp., C.R.S. 1963, 37-21-9. The principal issue concerns the validity of the acceleration clause contained in a deed of trust, a matter of first impression in Colorado. The clause in controversy, sometimes designated as a “due on sale” clause, provides as follows:

“The said party of the first part [Borrower] further covenants and agrees:

“Not to alienate nor…