Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.
Phonetics: ac·cel·er·a·tion clause \ik-ˌse-lə-rā-shən \ 'klȯz\
Acceleration clauses help to define the terms of the loan. Many terms can be included in an acceleration clause such as the prohibiting of the buyer from reselling the property without the written permission of the lender. Another common term is the prohibiting of the sale of the collateral used to secure the loan. An acceleration clause can penalize a borrower for late payments or failure to pay at all. Most loans with acceleration clauses have very reasonable terms, but there is always the chance that some of the terms may be very unfavorable to the borrower.