FinancingQuestion 86 of 120
A clause that allows a lender to declare the entire loan balance due immediately upon the borrower's default is an:
a.Alienation clause
b.Acceleration clause
c.Subordination clause
d.Escalation clause
Explanation
An acceleration clause lets the lender demand the full outstanding balance at once when the borrower defaults, for example by missing payments. It is a prerequisite to foreclosure for the whole debt. Without it, the lender could only pursue overdue installments.
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