The agreement may require an acceleration if a major commitment, such as the . B, non-payment of principal or interest, or non-payment of insurance premiums are late. Suppose a borrower with a five-year mortgage cannot make a payment in the third year. The terms of the loan contain an acceleration clause which stipulates that the borrower must repay the balance if a payment is not made. The borrower will be immediately contacted by the lender to pay the balance in full. If the borrower pays, he gets ownership of the property and takes full ownership of the property. If the borrower is unable to pay, they are considered to be contrary to the contract and the lender may close and confiscate the property for resale. This agreement is the comprehensive and unique agreement between the parties, replaces all other written agreements and agreements, with the exception of [the list of turnkey employees, non-competition, option or confidentiality agreements] concluded by the company and the officer and the acceleration agreement, which remain in full force and remain in force. The provision of a contract. B of credit, such as a mortgage, loan, loan or trust investment, which allows the lender to demand immediate payment of all the money owed if certain conditions arise before the date on which the payment would be due.
n. a provision of a contract or a change of contract that if an event occurs (such as timely payments), then the full amount or other requirements are due now, pronto. This clause is most often found in the change of ownership with installments for the purchase of real estate and requires that, when the property is sold, the total amount of the note is immediately due (the so-called clause due to sale) Some states prohibit “due to sale” and always allow the new owner to take over the debt. (See: Acceleration, acceptance) An acceleration clause is a provision of the contract that allows a lender to require a borrower to repay the entire outstanding loan if certain conditions are not met. An acceleration clause describes the reasons why the lender may require repayment of loans and repayment. Acceleration clauses are the most common for mortgages and help reduce the risk of default for the lender. They are usually based on payment customers, but can also be structured for other incidents. In most cases, an acceleration clause requires the borrower to immediately pay the remaining total amount of the loan in the event of a breach of conditions. In the event of a full payment of the loan, the borrower is exempt from any other interest payments and essentially repays the loan early at the time of use of the acceleration clause.