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Legal Dictionary Term: acceleration clause

Home Legal Dictionary Term: acceleration clause

Legal Dictionary Term: acceleration clause

What is acceleration clause?

n. a provision in a contract or promissory note that if some specified event (like not making payments on time) occurs then the entire amount is due or other requirements are due now, pronto. This clause is most often found in promissory notes with installment payments for purchase of real property and requires that if the property is sold then the entire amount of the note is due immediately (the so-called 'due on sale clause'). Some states prohibit 'due on sale' and always allow the new property owner to assume the debt.

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acceleration clause Information

Date Approved: Apr 20, 2019

Viewed: 534 x

Last Viewed: Aug 17, 2022

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