0
An acceleration clause, in the law of contracts, is a term that fully matures the performance due from a party upon a breach of the contract. Such clauses are most prevalent in mortgagesand similar contracts to purchase real estate in installments.
Suppose, for example, the contract was for A to purchase Blackacre from B for $100,000, to be paid in 5 monthly installments of $20,000. If A makes the first two payments, but fails to make the third payment, an acceleration clause would require that A must immediately pay B the entire balance of $60,000, or lose his right to purchase Blackacre (without getting a refund of his $40,000).
A sample acceleration clause reads like this:In the event of default in the payment of any of the said installments or said interest when due as herein provided, time being of the essence hereof, the holder of this note may, without notice or demand, declare the entire principal sum then unpaid immediately due and payable.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is the clause that permits lender to declare unpaid balance upon default?
acceleration clause
What are the terms of a chattel mortgage?
the buyer signs a promissory note, secured by the product, that constitutes a promise to repay the debt. The mortgage will typically contain an acceleration clause
What are kinds of clauses?
The two main types of clauses are independent clauses, which can stand alone as complete sentences, and dependent clauses, which rely on an independent clause to form a complete sentence. Dependent clauses often begin with subordinating conjunctions like "because," "if," "although," or "while."
The what is also known as the elastic clause?
Another name for the Elastic Clause is the Necessary and Proper Clause.
Is it legal for Bank of America to demand the entire balance of a car loan be paid if the borrower is three payments late?
Yes, its known as an acceleration clause. It was in your contract. That enables the lender to begin the process of repossession.
What is an objective clause?
An objective clause is a clause which is like a learning objective but this is the objective for an clause
What is the other name of your relative clause?
The other name for a relative clause is an adjective clause.
An adjective clause is a clause that?
a dependent clause that modifies a noun
What clause allows congress to expand its power?
full credit
What kind of clause contains a subject and a predicate?
It can be an independent clause or a dependent clause. It is an independent clause if does not have a word at the beginning like "but" or "because". If there is a word like this at the beginning of the clause, it is a dependent clause.
What is an insubordinate clause?
An insubordinate clause is just another word for an Independent clause. A subordinate clause is just another word for a Dependent clause. An Independent clause is a sentence that can stand by itself and a dependent clause can't stand by itself.
A clause that could be a sentence by itself is a?
main clause; subordinate clause
