n. a provision in a contract or promissory note that if some specified occasion (like not making repayments punctually) occurs then the entire quantity is born or any other demands are due now, pronto. This term is most often present promissory records with payments to buy of genuine residential property and requires that when the house is sold then whole level of the note arrives immediately (the so-called "due on sale term"). Some says prohibit "due on sale" and constantly let the brand new property owner to assume the debt.
clause written into financial agreements that allows the financial institution to need a complete payment whenever you want. It is only done if the payer does not pay. Additionally, it is called a call clause or an act of personal bankruptcy.
Provision usually included in loan documents, home loan agreements, alongside debt tools (particularly bonds and records). It provides the financial institution the ability to demand the whole loan amount (principal plus interest) to be compensated at a time, in the event the borrower doesn't make payments (defaults) or gets into serious financial hardships. Financing document details (frequently in fine print) which actions or occasions can trigger the acceleration term. Some banking institutions consist of unspecific terms such as for instance "if the bank otherwise deems it self insecure" to widen the range of standard. Also referred to as call clause. See additionally work of bankruptcy.