Power of Sale


Also found in: Financial.

Power of Sale

A clause commonly inserted in a mortgage and deed of trust that grants the creditor or trustee the right and authority, upon default in the payment of the debt, to advertise and sell the property at public auction, without resorting to a court for authorization to do so.

Once the creditor is paid out of the net proceeds, the property is transferred by deed to the purchaser, and the surplus, if any, is returned to the debtor. The debtor is thereby completely divested of any interest in the property and has no subsequent right of redemption—recovery of property by paying the mortgage debt in full.

References in periodicals archive ?
He also rejected the defense's argument that the "Affidavit of Compliance with Mortgage Notice of Default Requirements" it had recorded after conveying the property to itself constituted prima facie evidence that the bank had validly exercised it power of sale.
Bank, said he also found it noteworthy that, nearly a decade after that seminal decision, foreclosing banks are continuing to violate the terms of the power of sale and the rights of the other interest holders.
The BRA opposed the motion to dismiss, arguing that Boston Private Bank breached its power of sale and violated its common law duty to protect the covenant in the course of the foreclosure proceedings.
Mr Abuga also said that the Central Bank of Kenya did not consult their lawyers over the method of disposal, but proceeded to use its statutory power of sale.
TSB wished to exercise its power of sale under a mortgage.
With MapAnything, Salesforce will be uniquely positioned to extend the power of Sales Cloud and Service Cloud to deliver market-leading location-based intelligence solutions that improve field sales and service employee productivity and deliver customer success.
Philadelphia, PA, September 20, 2013 --(PR.com)-- In this Soundview Live webinar, How to Unleash the Power of Sales Culture, Todd Cohen will demonstrate that if you adopt a sales culture, you'll sell more and sell smarter because you won't every have to sell by yourself.