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NALORE v. SAN DIEGO FEDERAL SAV. AND LOAN ASS'N

No. 79-3481.

663 F.2d 841 (1981)

John F. NALORE and Norma L. Nalore, et al., Plaintiffs/Appellants, v. SAN DIEGO FEDERAL SAVINGS AND LOAN ASSOCIATION, et al., Defendants/Appellees.

United States Court of Appeals, Ninth Circuit.

Submitted July 27, 1981.

Decided September 23, 1981.

Rehearing and Rehearing Denied December 8, 1981.

Attorney(s) appearing for the Case

Fred Crane, Robert E. Boehmer, Mark A. Hiller, Riverside, Cal., for plaintiffs/appellants.

Aaron Peck, McKenna, Conner & Cuneo, Los Angeles, Cal., argued, for defendants/appellees; Terry O. Kelly, McKenna & Fitting, Los Angeles, Cal., on brief.

Before WRIGHT, CHOY and FERGUSON, Circuit Judges.

Rehearing and Rehearing En Banc Denied December 8, 1981.

EUGENE A. WRIGHT, Circuit Judge:

The Nalores purchased property in 1976, subject to San Diego Federal Savings and Loan Association's loan to the previous owners. The loan, negotiated in 1973 at 8% interest, was secured by a promissory note and trust deed with a due-on-sale clause.

In 1977 San Diego Federal demanded an increase in the interest rate and a transfer fee. It exercised the due-on-sale...

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