Acceleration clause
Definition
An Acceleration clause is a provision that allows a lender to demand payment of the total outstanding balance or demand additional collateral under certain circumstances, such as failure to make payments, bankruptcy etc. Most mortgages contain an Acceleration clause in it. An Acceleration clause is a also called a Due-on-Sale, Alienation, or Call Provision clause. A mortgage with an Acceleration Clause can only be assumed with written permission.
Related Terms Other terms related to 'Acceleration clause' starting with the letter 'A' Automated underwriting, A Credit, Affordability, Amortization, Application Browse by Letter » 1 4 A B C D E F G H I J L M N O P Q R S T U V W Y | 