ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An accelerated clause is a term in a loan agreement that requires the borrower to pay off the loan immediately under certain conditions. An accelerated clause is typically invoked when the borrower materially breaches the loan agreement.

Detailed explanation-2: -In a mortgage contract, an “acceleration clause” is a provision that permits the lender to demand that the borrower repay the entire loan after a default. An “acceleration clause” in a mortgage or deed of trust allows the lender, or current loan holder, to demand repayment in full if the borrower defaults on the loan.

Detailed explanation-3: -An acceleration clause gives the creditor the right to “accelerate” the amount the debtor owes under the promissory note and immedi-ately demand the entire balance due, not just a particular installment.

Detailed explanation-4: -An acceleration clause may show up in a loan agreement or contract when the lender wants to ensure repayment of the money. For example, it is often found in mortgages and requires borrowers to repay their outstanding mortgage balance if they fail to meet the requirements defined in their contract.