US Laws, Codes, Statutes & Cases

     57-15-2.   Provision for acceleration or increased interest on assumption unenforceable -- Exception.
     Subject to the limitations and exceptions provided for in this chapter, any provision in an instrument in existence before or after the effective date of this act representing a security interest in real estate is unenforceable as an unreasonable restraint upon alienation if the provision allows or requires the secured party, directly or indirectly, to accelerate or mature the indebtedness secured by the real estate or increase the interest rate specified in the instrument representing the security interest in the real estate, on account of the sale or transfer of all or part of the real estate or on account of the assumption by a new buyer of all or part of the indebtedness, except where the person to whom the real estate would be sold or transferred or by whom the indebtedness would be assumed is reasonably determined by the person holding the security interest to be in such a financially insecure position as to substantially impair the lender's prospect of prompt and full payment under the terms of the instrument.

Enacted by Chapter 224, 1981 General Session