Damen Savings & Loan Ass'n v. Heritage Standard Bank & Trust Co.

PRESIDING JUSTICE SEIDENFELD

delivered the opinion of the court:

Whether a “due-on-transfer” clause in a mortgage becomes operative upon transfer of record title to the trustee under a standard Illinois Land Trust is the question before us. The trial court dismissed the complaint of Damen Savings and Loan Association (mortgagee) for foreclosure, concluding that the conveyance to Heritáge Standard Bank and Trust Company, as trustee, was not a sale or a transfer within the contemplation of the mortgage clause. The mortgagee appeals.

The trial court held as a matter of law that the transfer was not…