Acceleration Clause
/ˌæk.səˈlɛr.eɪ.ʃən klɔz/
Definitions
- (n.) A provision in a contract that allows the creditor to demand full payment immediately if certain conditions occur, typically default.
The acceleration clause allowed the lender to call the entire loan balance due after the borrower missed a payment.
Forms
- acceleration clause
- acceleration clauses
Related terms
See also
Commentary
Acceleration clauses are common in loan and mortgage agreements to protect lenders by enabling early repayment demands upon specific triggers.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.