An acceleration clause does not affect negotiability however an extension clause will render an instrument nonnegotiable.

Question

Quizplus · Accepted Answer

An acceleration clause can affect negotiability if it gives the holder the right to demand payment of the entire amount due immediately. On the other hand, an extension clause only postpones the due date and does not affect negotiability. Therefore, the statement is false.

An Acceleration Clause Does Not Affect Negotiability However an Extension