### Question
How is the "due-on-sale clause" defined?


### Answer
The term **due-on-sale clause** is defined in *12 U.S.C. § 1701j* as follows -

> 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**

