Acceleration clause

Acceleration clause in a loan agreement is a clause that allows the lender to redeem payments of the outstanding loan if the borrower did not maintain a regular payoff frequency.

It is a clause that allows an issuer to payoff the remaining balance of a debt ahead of time incurring a penalty or fee in the process which to a limited degree, reimburses the lender.

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use