Loan mechanics
Acceleration clause
A clause making the whole balance due immediately on default
Without it, a lender facing a missed payment could only sue for the instalments as they fell due. Acceleration turns a default into a demand for the entire balance, and it is what makes foreclosure practical.
How the exam asks about it
Distinguish from the alienation clause, which is triggered by a transfer of the property rather than by a default.
Related terms
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