acceleration clause

acceleration clause definition - finance
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.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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