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Simple English definitions for legal terms

due-on-sale clause

Read a random definition: quod computet

A quick definition of due-on-sale clause:

A due-on-sale clause is a rule in a loan agreement that says if you sell the thing you bought with the loan, you have to pay back the whole loan right away. This is to make sure the lender gets their money back and to prevent people from taking advantage of low interest rates by selling the thing they bought and keeping the loan.

A more thorough explanation:

A due-on-sale clause is a provision in a loan agreement that requires the borrower to pay off the loan in full if the asset used as collateral is sold or transferred to another party. This clause is commonly found in mortgage agreements and is designed to protect the lender's interests.

Let's say you take out a mortgage to buy a house. The mortgage agreement includes a due-on-sale clause that states that if you sell the house, you must pay off the remaining balance of the loan. If you decide to sell the house to someone else, you would need to pay off the mortgage in full before the sale can be completed.

Another example would be if you used your car as collateral for a loan. If you sell the car to someone else, the due-on-sale clause would require you to pay off the remaining balance of the loan before the sale can be completed.

These examples illustrate how a due-on-sale clause can protect the lender's interests by ensuring that the loan is paid off in full if the asset used as collateral is sold or transferred to another party.

due, owing, and unpaid | DUI

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babycat
11:37
Aw that’s so sweet Bulbasaur <3
11:39
@m10: stretching absolutely helps with tight tendons lol
11:39
now kiss
m10
11:40
@EvolBunny: Indeed! I am just riffing. Practicing for when I get into Chicago and do standup there on the weekends and get mad pussy.
11:40
You only do cardio on the weekends ;)
babycat
11:40
@m10: I have a friend that does this but he doesn’t get mad pussy
m10
11:40
I'll work that in! Sounds like a good way to segway.
m10
11:41
@babycat: yeah, well unlike 99.99% of people who do standup I will.
BulbasaurNoLikeCardio
11:41
To do stand up comedy you have to have fat balls, that is awesome
m10
11:41
Woah, I got little balls. Like Adam Friedland. I ain't no Stavros.
what are we hoping for today?
m10
11:44
Nothing. No news is good news for me.
11:44
Crickets coming from my status update
babycat
11:45
dk are we gonna go to a homoerotic law school together?
11:45
@m10: at undergrad froshers: https://www.youtube.com/watch?v=6YEarMyIAzs
m10
11:46
@EvolBunny: God damn, classic Randy.
babycat
11:48
Going to law school with you is even more fun than going to San Sebastian, Irún, Hendaye, Biarritz, Bayonne or being sick to my stomach on the Travesera de Gracia in Barcelona partly because in your orange shirt you look like a better happier St. Sebastian partly because of my love for you, partly because of your love for yoghurt partly because of the fluorescent orange tulips around the birches partly because of the secrecy our smiles take on before people and statuary
m10
11:49
Man, there is this girl I visit every month at this one restaurant who I used to go skinny dipping with naked like @ararara always talked about in San Diego. We randomly reconnected like two months ago at this place she works at and we talk a lot about John Steinbeck books. If I don't visit her this month, she might be sad. However, this is my first day not sick and I worry about getting her sick and I am broke. What should I do LSD?
m10
11:49
Thanks @babycat that means a lot!
m10
11:50
Glad we can both be content at Scalia law. One of my favorites.
you can ask her if she wants to risk getting sick
11:50
hi lsd
m10
11:50
I dont have her number or any social media. This is one of those regular kinda things in restaurant and bar culture.
11:50
berk td is unlikely so BERK MONDAY :eyes:
hi eggan :)
babycat
11:52
@m10: I’m not going to DC this isn’t going to work out
11:55
hello all
hello info man
@m10: go see her it's worth the risk
11:55
hey wasp
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