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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Acceleration Clause


Synonyms:fine print, full payment, motion to be paid, provision, stipulation
Filed Under: financial-banking, legal-contracts
Tags: banking, clause, contract, legal, mortgage, mortgage lender
 

Definition of acceleration clause

acceleration clause
1. The section of a contract or document that allows the lender to speed up the payment date in the event of a default, making the entire principal amount due.

Related Terms and Acronyms:

  • alienation clause   A requirement that the borrower pay the mortgage in full upon transfer of the property.
  • call option   A clause in a mortgage that gives the lender the right to request the balance at any time.
  • contract   An agreement between two or more parties that can be enforced by law.
  • conversion clause   A provision that may appear in an adjustable-rate loan agreement allowing the loan to be changed to a fixed-interest rate loan, usually for an additional charge.
  • mortgage acceleration clause   A provision of a loan agreement that lets a lender demand payment of the full balance under specified circumstances, such as sale of the property, default or refinancing. Not commonly used in Canada and/or Canadian lenders.

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