acceleration clause

acceleration clause: acceleration clause n: a clause (as in a loan agreement) that accelerates the date of payment in full under specified circumstances (as default by the debtor)

acceleration clause: n.
A clause in a contract or mortgage that causes the entire payment to become due if a specific event occurs; common in installment contracts, in which the entire debt becomes due if the buyer fails to make payments on time.

acceleration clause: A contract clause that provides that the entire outstanding amount owed under the contract will become immediately due under certain circumstances. This clause is most often found in promissory notes with installment payments for purchase of real property and requires that if the property is sold then the entire amount of the note is due immediately (the so-called "due on sale clause").

Category: Business, LLCs & Corporations

Category: Personal Finance & Retirement

acceleration clause: USA

A clause in a mortgage that gives a lender the opportunity to demand full payment of an outstanding loan balance in specific circumstances defined in the mortgage agreement. Acceleration occurs most commonly where a borrower defaults or transfers title without informing the lender first.

acceleration clause: n. A provision in a contract or in a testamentary or other legal document that, upon the occurrence of specific events, a party's future interest in certain property will prematurely vest. For example, in many loan or mortgage agreements, provision is made that if some specified event occurs, such as the debtor's failure to pay an installment, the creditor may declare the entire outstanding balance to be immediately due.

acceleration clause: The provision in a credit agreement, such as a mortgage, note, bond, or deed of trust, that allows the lender to require immediate payment of all money due if certain conditions occur before the time that payment would otherwise be due.

acceleration clause: The provision in a credit agreement, such as a mortgage, note, bond, or deed of trust, that allows the lender to require immediate payment of all money due if certain conditions occur before the time that payment would otherwise be due.

acceleration clause: n.

a provision in a contract or promissory note that if some specified event (like not making payments on time) occurs then the entire amount is due or other requirements are due now, pronto. This clause is most often found in promissory notes with installment payments for purchase of real property and requires that if the property is sold then the entire amount of the note is due immediately (the so-called "due on sale clause"). Some states prohibit "due on sale" and always allow the new property owner to assume the debt.

See also: acceleration assumption

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acceleration clause — Any clause in a contract which spells out that when certain actions are taken, the clause comes into effect. A common acceleration clause is the clause in a lease that says if a company goes into bankruptcy, three months rent is due as a… … Glossary of Bankruptcy
Acceleration clause — An acceleration clause, in the law of contracts, is a term that fully matures the performance due from a party upon a breach of the contract. Such clauses are most prevalent in mortgages and similar contracts to purchase real estate in… … Wikipedia
Acceleration Clause — A contract provision that allows a lender to require a borrower to repay all or part of an outstanding loan if certain requirements are not met. An acceleration clause outlines the reasons that the lender can demand loan repayment. Also known as… … Investment dictionary
acceleration clause — noun : a clause (as in a loan contract) providing for advancement of the date of payment under specified circumstances * * * a provision of a mortgage, loan, or the like that advances the date of payment under certain circumstances. [1930 35] * * … Useful english dictionary
acceleration clause — noun a provision in a contract that makes all obligations to be performed under the contract due immediately upon a specific occurrence, such as a breach Joe was mortified to learn that his failure to make a scheduled car payment triggered an… … Wiktionary
acceleration clause — A provision or clause in a mortgage, note, bond, deed of trust, or other credit agreement, that requires the maker, drawer or other obligor to pay part or all of the balance sooner than the date or dates specified for payment upon the occurrence… … Black's law dictionary
acceleration clause — A provision or clause in a mortgage, note, bond, deed of trust, or other credit agreement, that requires the maker, drawer or other obligor to pay part or all of the balance sooner than the date or dates specified for payment upon the occurrence… … Black's law dictionary
acceleration clause — A clause in a note or mortgage stipulating that the whole debt secured thereby shall become due and payable upon the failure of the maker to pay the interest annually or to comply with any other condition of the contract. 11 Am J2d B & N § 181;… … Ballentine's law dictionary
acceleration clause — a provision of a mortgage, loan, or the like that advances the date of payment under certain circumstances. [1930 35] * * * … Universalium
acceleration clause — A provision in a loan document stating that the entire amount of unpaid indebtedness owed to the lender may become immediately due and payable if the borrower defaults. American Banker Glossary A contract stating that the unpaid balance becomes… … Financial and business terms

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acceleration clause

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