acceleration clause

noun

  • Contract Law
  • Banking and Finance

Definitions of acceleration clause

  • a clause in a contract, usually a loan agreement, requiring the borrower to make full payment sooner than originally agreed upon the occurence of an event stated in the contract

    Many courts uphold acceleration clauses in commercial leases that require tenants to pay the rest of the rent due for the remainder of the lease term if the tenant breaches the lease.

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Phrase Bank for acceleration clause