Citizens Valley Bank v. Mueller

Defendants appeal from a summary judgment in this suit to foreclose a mortgage.

Plaintiff held a mortgage on land owned by defendants. It contained an acceleration clause that, on defendants’ default in performance of any of its covenants, allowed plaintiff, at its option and without notice, to declare the balance owing due and payable and to foreclose. Lane County threatened to condemn part of the land. When a title company called plaintiff to inquire whether plaintiff would release its interest in the land, plaintiff learned that proceeds from the proposed condemnation were to be applied to…