(plural acceleration clauses)
- (law) 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 acceleration clause requiring that the entire balance due on the car must be paid immediately.
acceleration-clause - Investment & Finance Definition
A clause in a loan agreement that can be invoked by the lender when the borrower fails to make payments, files bankruptcy, or otherwise breaks a loan agreement. The clause allows the lender to demand that the borrower pay the outstanding loan balance or provide additional collateral.
acceleration-clause - Legal Definition