Acceleration Clause

Definition

  • The section of a contract or document that allows the lender to speed up the payment date in the event of a default, making the entire principal amount due.

Synonyms
provision, stipulation, fine print, full payment, motion to be paid

Related Terms and Acronyms

  • Alienation Clause Definition,
    • A requirement that the borrower pay the mortgage in full upon transfer of the property.
  • Call Option Definition,
    • A clause in a mortgage that gives the lender the right to request the balance at any time.
  • Contract Definition,
    • An agreement between two or more parties that can be enforced by law.
  • Conversion Clause Definition,
    • A provision that may appear in an adjustable-rate loan agreement allowing the loan to be changed to a fixed-interest rate loan, usually for an additional charge.
  • Mortgage Acceleration Clause Definition, Important,
    • A provision of a loan agreement that lets a lender demand payment of the full balance under specified circumstances, such as sale of the property, default or refinancing. Not commonly used in Canada and/or Canadian lenders.
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