Security Federal Savings & Loan Ass'n of Aiken v. Coleman

Gregory, Justice:

The narrow issue in this case is whether a court sitting in equity may use its broad equitable powers in ordering a lending institution to take a note and mortgage from a party not of its choosing. Under the facts and issues presented by this case, we hold that it was error and reverse the decision below.

In 1978, the Colemans executed and delivered a note and mortgage to appellant Security Federal. The mortgage contained a “due on sale” clause giving appellant the right to declare the mortgage due upon sale of the property. The mortgage expressly provided any waiver of the…