A(n)________ allows a payee or holder to quicken payment of the principal amount of an instrument,plus accrued interest,upon the occurrence of an event.
A) acceleration clause
B) prepayment clause
C) extension clause
D) forestallment clause

Question

Quizplus · Accepted Answer

An acceleration clause allows a payee or holder to demand payment of the principal amount of an instrument, plus accrued interest, upon the occurrence of an event. This typically speeds up the payment schedule and is often used in loans or mortgages if the borrower defaults on payments or breaches the contract in some other way.

A(n)________ Allows a Payee or Holder to Quicken Payment of the Principal