Acceleration Clause
Definition of
'Acceleration Clause'
It is a part of the
contract that notifies when insurance loan may be stated payable and due.
Helman Insurance clarifies it;
when a borrower fails to give payment to borrower or lender violate the
agreement of payment. Lender required a payment on loan to pay the lender. Acceleration clauses are
most commonly found in mortgage and real estate loans. Since these loans tend
to be so large, the clause helps protect the lender from the risk of borrower
default. It is contract conditions which permit the lender to ask borrower to
pay back all or certain amount of outstanding loan if the borrower violate the
any payment agreement or rules of agreement. Acceleration Clause is known as
Acceleration Covenant.