Escalation Clause

Definition of "Escalation clause"

Beth Christo
  RE/MAX Realty Unlimited

provision in a rental agreement or other contract that stipulates for an increase in lease payments or in a contract price if a specified uncontrollable event occurs.
Provision in a loan agreement or mortgage in which the entire debt becomes immediately due upon the occurrence of an item such as missing three consecutive monthly payments or when the current ratio falls below 1.0.

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