Hummell

Robert J.and Lorraine L. Hummell, plaintiffs, appeal a condition attached to a preliminary injunction obtained by them to stop foreclosure on a trust deed.

The Hummells bought real property expecting to assume a first trust deed with interest at an annual percentage rate of 9.50. The trust deed contains a due-on-sale clause and is held by Republic Federal Savings *51 and Loan Association* a federally chartered institution. The Hummells’ attorney notified Republic of the transfer of title, whereupon Republic filed a notice of default claiming the transfer violated the due-on-sale clause.

The Hummells sued for declaratory relief, attorney fees, slander of title and an injunction against the forced sale. The parties stipulated at trial that the legal issues in this case are the same as those presented in de la Cuesta v. Fidelity Fed. Sav. & Loan Assn. (1981) 121 Cal.App. 3d 328 [ 175 Cal.Rptr. 467 ]. In de la Cuesta the court held Wellenkamp v. Bank of America (1978) 21 Cal.3d 943 [ 148 Cal.Rptr. 379 , 582 P.2d 970 ] applied to federally chartered banks and was not preempted by federal regulations allowing due-on-sale clauses. The United States Supreme Court granted…