Acceleration Clause

Business, Legal & Accounting Glossary

Definition: Acceleration Clause



What is the dictionary definition of Acceleration Clause?

Dictionary Definition


n. a provision in a contract or promissory note that if some specified event (like not making payments on time) occurs then the entire amount is due or other requirements are due now, pronto. This clause is most often found in promissory notes with instalment payments for the purchase of real property and requires that if the property is sold then the entire amount of the note is due immediately (the so-called “due on sale clause”). Some states prohibit “due on sale” and always allow the new property owner to assume the debt.


Full Definition of Acceleration Clause


The provision in a credit agreement, such as a mortgage, note, bond, or deed of trust, that allows the lender to require immediate payment of all money due if certain conditions occur before the time that payment would otherwise be due.

The agreement may call for acceleration whenever there is a default of any important obligation, such as nonpayment of principal or interest, or the failure to pay insurance premiums.


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Acceleration Clause. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 01, 2020 https://payrollheaven.com/define/acceleration-clause/.
Chicago Manual of Style (CMS):
Acceleration Clause. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/acceleration-clause/ (accessed: December 01, 2020).
American Psychological Association (APA):
Acceleration Clause. PayrollHeaven.com. Retrieved December 01, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/acceleration-clause/

Definition Sources


Definitions for Acceleration Clause are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 0 Views.