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acceleration clause

   Also found in: Legal, Wikipedia 0.04 sec.
Acceleration clause
A contract stating that the unpaid balance becomes due and payable if specific actions transpire, such as failure to make interests payments on time.
acceleration clause
A provision in a bond indenture that in the event of default allows the trustee or the holders of 25% of the principal amount of the outstanding issue to declare all of the principal and interest immediately. Calling for an acceleration is likely to cause the borrower to cure the default or seek bankruptcy protection.
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First, when selling an apartment, try to build in an extended close date--maybe even try to ask the purchaser of the apartment if there can be an acceleration clause for the close date if the sponsor is ready to close sooner rather than later.
New construction buyers need to be wary of timing by Gonchar, Eric P. / Real Estate Weekly
79-3 says if a long-term debt agreement does contain a subjective acceleration clause and acceleration of the due date is remote, neither reclassification to current liabilities nor disclosure of the acceleration clause is required.
Mortgage-backed securities by Journal of Accountancy
Cases suggest, however, that an acceleration clause would be enforced if it provided for an offset for the reasonably anticipated revenues from re-letting.
What damages can an owner collect when a tenant vacates prior to ... by Claman, Richard / Real Estate Weekly
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