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Acceleration Clause

Definition: Provision authorizing a lender to call a debtor's obligation due or demand additional collateral. An acceleration clause is one of those terms found buried in the fine print of a loan agreement. The Definition: loan agreement should spell out the specific events that will trigger acceleration of payment (fraud, bankruptcy, selling the company, or breaking loan covenants are just a few examples). Definition: [crh] A contract stating that the unpaid balance becomes due and payable if specific actions transpire, such as failure to make interests paymDefinition: ents on time.

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