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Acceleration Clause
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A clause in a contract that states that if a payment is missed, or some other default occurs (such as the debtor becoming insolvent), then the contract is fully due immediately.
Here's a typical acceleration clause in a loan
contract: miss 1 payment and the agreement to pay at regular intervals is voided and the entire amount becomes due and payable immediately.
CATEGORIES AND TOPICS:
This term applies to the following areas of law and categories;