Search Dictionary:
Acceleration Clause definition was found in categories: Business & Finance(3) Law(2) Encyclopedia(1)
Acceleration Clause Definition from Business & Finance Dictionaries & Glossaries
| BASSAM Trade, Real Estate, Mortgage, Fund,Invest, Insurance,& Tax,Terms/abbreviations/defin. |
ACCELERATION CLAUSE
A provision normally found in a legal loan document, (mortgage contract) which requires the immediate payment of a specified debt when the principal fails to meet the terms and conditions of the note.
A provision normally found in a legal loan document, (mortgage contract) which requires the immediate payment of a specified debt when the principal fails to meet the terms and conditions of the note.
| Dictionary of Real Estate Terms |
ACCELERATION CLAUSE
A condition in a real estate financing instrument giving the lender the power to declare all sums owing lender immediately due and payable upon the happening of an event, such as the sale of the property, or a delinquency in the repayment of the note.
A condition in a real estate financing instrument giving the lender the power to declare all sums owing lender immediately due and payable upon the happening of an event, such as the sale of the property, or a delinquency in the repayment of the note.
| Debt Busters |
Acceleration Clause
Condition in a mortgage that may require the balance of the loan to become due immediately, if regular mortgage payments are not made or for breach of other conditions of the mortgage.
Condition in a mortgage that may require the balance of the loan to become due immediately, if regular mortgage payments are not made or for breach of other conditions of the mortgage.
Acceleration Clause Definition from Law Dictionaries & Glossaries
| Duhaime.org Legal Dictionary |
Acceleration clause
A clause in a contract that states that if a payment is missed, or some other default occurs (such as the debtor becoming insolvent), then the contract is fully due immediately. - (read more on Acceleration clause)
A clause in a contract that states that if a payment is missed, or some other default occurs (such as the debtor becoming insolvent), then the contract is fully due immediately. - (read more on Acceleration clause)
| Canadian Insolvency Dictionary |
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.
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.
Acceleration Clause Definition from Encyclopedia Dictionaries & Glossaries
| Wikipedia English - The Free Encyclopedia |
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 installments.
Suppose, for example, the contract was for A to purchase Blackacre from B for $100,000, to be paid in 5 monthly installments of $20,000. If A makes the first two payments, but fails to make the third payment, an acceleration clause would require that A must immediately pay B the entire balance of $60,000, or lose his right to purchase Blackacre (without getting a refund of his $40,000).
| See more at Wikipedia.org... |