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ACCELERATION CLAUSE

acceleration clause.A loan-agreement provision that requires the debtor to pay off the balance

sooner than the due date if some specified event occurs, such as failure to pay an installment or to

maintain insurance. Cf. DE-MAND CLAUSE; INSECURITY CLAUSE. [Cases: Bills and Notes

129(2). C.J.S. Bills and Notes; Letters of Credit §§ 76, 92–100.] [Blacks Law 8th]