An acceleration clause
A) gives the purchaser recourse to the seller if a third party purchased the contract.
B) demands all interest to be paid when an installment payment is missed.
C) gives the lender security in all goods purchased.
D) demands loan repayment when a payment is missed.
E) allows prompt access to one s salary or wages.

Question

Quizplus · Accepted Answer

An acceleration clause demands loan repayment when a payment is missed. It allows the lender to accelerate the due date of the loan and demand the borrower to pay off the entire remaining balance of the loan in one lump sum. It applies to both mortgages and other loans.

An Acceleration Clause