Define That Term: The Definition Over the weekend, we asked you to define acceleration clause. Law defines it as: n. a provision in a contract or promissory note that if some specified event (like not making payments on time) occurs then the entire amount is due or other requirements are due now, pronto. This clause is most often found in promissory notes with installment payments for purchase of real property and requires that if the property is sold then the entire amount of the note is due immediately (the so-called due on sale clause). Some states prohibit due on sale and always allow the new property owner to assume the debt. Thanks for all of your definitions and check back next weekend for the next Define That Term!
Posted on: Mon, 02 Dec 2013 14:21:07 +0000
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