Acceleration Clause in United States
Practical Information
Note: Some of this information was last updated in 1982
An essential statement contained in a contract (in U.S. law) evidencing a debt (as in mortgage (in U.S. law) , promissory note (in U.S. law), or installment contract (in U.S. law)), which provides that the entire debt becomes due and payable immediately when some condition of the contract is breached. The acceleration may be automatic when the breach occurs or it may require an unequivocal election to accelerate. Notice of such intent to accelerate must be given to the obligor. Without this clause, the mortgagee or seller would have to sue for the amount of each payment as it becomes due, or wait until the entire debt matures.
What is Acceleration Clause?
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