acceleration clause
acceleration clause
Any clause in a contract which spells out that when certain actions are taken, the clause comes into effect. A common acceleration clause is the clause in a lease that says if a company goes into bankruptcy, three months rent is due as a preferred claim. (Dictionary of Canadian Bankruptcy Terms)

United Glossary of Bankruptcy Terms 2012.


Glossary of Bankruptcy.

Look at other dictionaries:

  • acceleration clause — n: a clause (as in a loan agreement) that accelerates the date of payment in full under specified circumstances (as default by the debtor) Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. acceleration clause …   Law dictionary

  • Acceleration clause — 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 mortgages and similar contracts to purchase real estate in… …   Wikipedia

  • Acceleration Clause — A contract provision that allows a lender to require a borrower to repay all or part of an outstanding loan if certain requirements are not met. An acceleration clause outlines the reasons that the lender can demand loan repayment. Also known as… …   Investment dictionary

  • acceleration clause — noun : a clause (as in a loan contract) providing for advancement of the date of payment under specified circumstances * * * a provision of a mortgage, loan, or the like that advances the date of payment under certain circumstances. [1930 35] * * …   Useful english dictionary

  • acceleration clause — noun a provision in a contract that makes all obligations to be performed under the contract due immediately upon a specific occurrence, such as a breach Joe was mortified to learn that his failure to make a scheduled car payment triggered an… …   Wiktionary

  • acceleration clause — A provision or clause in a mortgage, note, bond, deed of trust, or other credit agreement, that requires the maker, drawer or other obligor to pay part or all of the balance sooner than the date or dates specified for payment upon the occurrence… …   Black's law dictionary

  • acceleration clause — A provision or clause in a mortgage, note, bond, deed of trust, or other credit agreement, that requires the maker, drawer or other obligor to pay part or all of the balance sooner than the date or dates specified for payment upon the occurrence… …   Black's law dictionary

  • acceleration clause — A clause in a note or mortgage stipulating that the whole debt secured thereby shall become due and payable upon the failure of the maker to pay the interest annually or to comply with any other condition of the contract. 11 Am J2d B & N § 181;… …   Ballentine's law dictionary

  • acceleration clause — a provision of a mortgage, loan, or the like that advances the date of payment under certain circumstances. [1930 35] * * * …   Universalium

  • acceleration clause — A provision in a loan document stating that the entire amount of unpaid indebtedness owed to the lender may become immediately due and payable if the borrower defaults. American Banker Glossary A contract stating that the unpaid balance becomes… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”