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You are asking . . .

Q. We insert these in our mortgages, but are due-on-sale clauses actually enforceable?

A. Yes. Due-on-sale clauses are not prohibited by statue or case law. See, e.g. Northwestern Fed. Sav. & Loan Ass'n v. Ternes, 315 N.W.2d 296 (N.D. 1982). However, be aware of N.D.C.C. § 47-02-26, which provides that "[c]onditions restraining alienation, when repugnant to the interest created, are void." "Alienation" is the act of transferring property or the title to property to another. In an attempt to avoid making due-on-sale clauses susceptible to challenge under N.D.C.C. § 47-02-26, a due-on-sale clause should provide that default occurs upon sale of the collateral without the secured party's written consent, rather than a blanket prohibition on transfer or sale. The blanket prohibition may be seen as the kind of restraint upon alienation that the law frowns upon.