Acceleration Clause | Practical Law

Acceleration Clause | Practical Law

Acceleration Clause

Acceleration Clause

Practical Law Glossary Item 9-502-0036 (Approx. 2 pages)

Glossary

Acceleration Clause

A clause in a credit agreement or mortgage that, on the occurrence of a specified event in the credit agreement or mortgage, gives a lender the right to demand full payment of all amounts owing under the agreement. Acceleration most commonly occurs when a borrower has defaulted in any of its obligations under the agreement. For more information on acceleration and other lender remedies, see Practice Note, Lender's Remedies and Enforcement Issues.