### Question
How does the law define due-on-sale clause?


### Answer
Under *12 U.S.C. § 1701j*, **due-on-sale clause** is defined as:

> a contract provision which authorizes a lender, at its option, to declare due and payable sums secured by the lender's security instrument if all or any part of the property, or an interest therein, securing the real property loan is sold or transferred without the lender's prior written consent

#### Citation:
  - *12 U.S.C. § 1701j*
  - Heading: **CHAPTER 13-NATIONAL HOUSING**

