Basic Uniform Commercial Code

Acceleration Clause


Typically, an unpaid balance only causes a debtor to default as to that payment. Any other planned payments would have to default and be sued over separately.

Acceleration clauses solve this by saying that the whole debt is due whenever the debtor defaults on any payment.

An acceleration clause will prevent the debtor from having a right to redeem.

On the bar, you should probably assume that there is a valid acceleration clause.