Loan payment terms- "Borrower will pay loan in full upon demand"

[Susan Hartman]

Is it normal for payment terms to require the following; "Borrower will pay this loan in full immediately upon lenders demand."? It follows with "If no demand is made borrow will pay this loan in 359 payments." This is an in house loan from a small local bank for a duplex I purchased. The terms of payment all make sense to me except the option that the bank could demand full payment at any time.  

Thanks for any knowledgeable advice!

[Jeff S.]

You need to provide more context, @Susan Hartman.

As a stand-alone clause in the note, this makes no sense since it removes all of your protections. This is a document you either walk away from or negotiate using a lawyer who knows what he or she is doing.

On the other hand, is it located within the Default clause, such as:

“DEFAULT. On (a) Borrower’s failure to pay any installment or other sum due under this Note when due and payable, or (b) …, or (c) …, or (d) …, then Lender may, at its option, declare this Note due and payable immediately.”

If so, the bank can only demand payment if you trigger a default.

Please clarify.

Also, you wrote this is for a duplex you purchased. Is this in your existing note, or are you looking to refinance?