In many states, longstanding principles of res judicata, when taken with the state law's treatment of acceleration clauses, require courts to grant homeowners "free houses" when banks lose their foreclosure cases.
This is the lender's only remedy in contracts without acceleration clauses.
A tenant could very well go along with such proposal when the owner's concession is more attractive than either paying a buyout or incurring an acceleration clause liability.
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.
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 its consensus, the EITF stated that such provisions are not subjective acceleration clauses and that the debt should be classified as a current liability.
respectively) per the documentation of these loans, acceleration clauses
could be triggered, potentially posing refinancing risks to the municipality.
Cases suggest, however, that an acceleration clause would be enforced if it provided for an offset for the reasonably anticipated revenues from re-letting.
Nonetheless, it is our view that there are important practical advantages to a landlord in providing, as an additional and alternative remedy to form Lease [paragraph]18, for an acceleration clause.
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).