Acceleration Clause Law and Legal Definition

An acceleration clause is a contractual provision which allows the holder to declare the remaining balance due and payable immediately upon the occurrence of a default in the obligation.

It is a clause used in an installment note, mortgage, or deed of trust, which gives the lender the right to demand payment in full upon the happening of a certain event, such as failure to pay an installment by a certain date, change of ownership without the lender's consent, destruction of the property, or other event which makes the loan repayment insecure.