INSECURITY CLAUSE

insecurity clause.A loan-agreement provision that allows the creditor to demand immediate and full payment of the loan balance if the creditor has reason to believe that the debtor is about to default, as when the debtor suddenly loses a significant source of income. Cf. ACCELERATION CLAUSE. [Cases: Bills and Notes 129(1); Secured Transactions 221. C.J.S. Bills and Notes; Letters of Credit §§ 86–89, 91; Secured Transactions §§ 144, 151.]

[Blacks Law 8th]