Acceleration Clause

Definition of "Acceleration clause"

A clause inserted in a mortgage, note, bond, deed of trust, or other credit vehicle that allows the lender to request monies due. Usually, such a clause becomes operational when there has been a default in payments of interest or principal, or both. Thereafter, the entire principal sum in called in and becomes due and payable, this would precipitate a foreclosure in the case of real estate, or bankruptcy action if the monies were not paid at the time of the call.

Search Real Estate Glossary

Related Real Estate Glossary terms

Related Real Estate FAQ