(4.) This is the lender's only remedy in contracts without acceleration clauses. See Restatement (Third) of Prop.
(5.) Acceleration clauses are routine in mortgage notes.
Foreclosures begin with a mortgage note's "acceleration clause." Under a mortgage note, the homeowner is required to make a certain payment every month for a fixed period.
4th DCA 1999) (holding that when an installment contract contains an optional acceleration clause
, the statute of limitations for recovering under the contract may commence running on payments not yet due if the holder exercises its right to accelerate the total debt because of a default).
Under these circumstances, the owner still holds the lease term and any acceleration clause
as a bargaining chip but can afford to be more accommodating in light of the common goal.
79-3, Subjective Acceleration Clauses in Long-Term Debt Agreements.
79-3 are inconsistent in their treatment of subjective acceleration clauses in debt agreements.
However, according to the statement, that agreement shouldn't be cancelable by the lender because of a subjective acceleration clause.
In Technical Bulletin 79-3 the FASB staff stated its view that subjective acceleration clauses in long-term debt agreements (as opposed to short-term debt being refinanced) would only cause such debt to be classified as a current liability in situations involving recurring losses or liquidity problems where it is considered probable that the clause will be invoked.
In issue 86-5, "Classification of Demand Debt with Long-Term Repayment Schedules," the Emerging Issues Task Force (EITF) addressed the question of whether clauses in loan agreements with scheduled payments which allow the creditor to demand payment at any time constitute subjective acceleration clauses. In its consensus, the EITF stated that such provisions are not subjective acceleration clauses and that the debt should be classified as a current liability.
This clause reflects a view that acceleration clauses are of dubious enforceability.
Cases suggest, however, that an acceleration clause would be enforced if it provided for an offset for the reasonably anticipated revenues from re-letting.