Lincoln Mortgage Investors v. Cook

DOOLIN, Justice:

This case presents an issue of first impression in Oklahoma: the validity of due-on-sale clauses in mortgages when the lender is not a federal lending institution.1 Specifically at issue is whether the due-on-sale clause is invalid per se as a clog on the equity of redemption; if not, whether the due-on-sale clause is unenforceable as an unreasonable restraint on alienation absent a showing by the lender that his security has been impaired and/or that foreclosure is fair, reasonable and equitable under the circumstances. We must respond to both in the negative.

Lincoln Mortgage…