United Virginia Bank/National v. Best

In the companion case of Lipps v. First American Ser. Corp., 223 Va. 131, 286 S.E.2d 215 (1982) (this day decided), we held that a due-on-sale acceleration clause in a security deed of trust is not an unreasonable restraint on alienation in Virginia. The lower court in this case decided to the contrary and held that the lender did not have the option to activate the acceleration clause unless it could prove that the security for its obligation was impaired. We disagree with that conclusion and reverse the judgment of the trial court.

In August, 1972, Edward and Anna Firth (Borrowers) acquired…