Acceleration Clause
An acceleration clause is a contract provision allowing the lender to declare the loan immediately due and payable following an event of default. It is a core enforcement concept in many credit agreements.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Loan documentation; default/workout
- Property types
- All loan types
In practice
Intercreditor arrangements can effectively change the timeline to acceleration in multi-layer capital stacks (through negotiated cure/standstill concepts).
Related terms
event of defaultcure perioddefault interestacceleration
Commercial Lending
- Bridge Loan
- Credit Facility
- Debt Service Coverage Ratio (DSCR)
- Net Operating Income (NOI)
- Pari Passu Loan
- SBA 504 Loan Program
General information, not legal, tax or financial advice.