Notwithstanding any provision of the statutory or common laws of this state to the contrary, a lender may enter into or enforce a contract containing a due-on-sale clause with respect to a real property loan, except as provided in Sections 5 and 6 [48-7-19, 48-7-20 NMSA 1978] of this act.
History: Laws 1983, ch. 314, § 3.
ANNOTATIONSNot restraint on alienation. — Due-on-sale clauses in a commercial mortgage are not a restraint on alienation of property. Brummund v. First Nat'l Bank, 1983-NMSC-002, 99 N.M. 221, 656 P.2d 884; Quintana v. First Interstate Bank, 1987-NMCA-062, 105 N.M. 784, 737 P.2d 896.
Law reviews. — For annual survey of New Mexico law relating to property, see 12 N.M.L. Rev. 459 (1982).
Am. Jur. 2d, A.L.R. and C.J.S. references. — Validity, construction, and application of provisions entitling mortgagee to increase interest rate on transfer of mortgaged property, 92 A.L.R.3d 822.
What transfers justify acceleration under "due-on-sale" clause of real estate mortgage, 22 A.L.R.4th 1266.
Validity and enforceability of due-on-sale real-estate mortgage provisions, 61 A.L.R.4th 1070.