provision contained in a bond indenture requiring that in an event of default any remaining interest and principal become immediately due and payable.

provision, normally present in an indenture agreement, mortgage, or other contract, that the unpaid balance is to become due and payable if specified events of default should occur. Such events include failure to meet interest, principal, or sinking fund payments; insolvency; and nonpayment of taxes on mortgaged property.

clause in a mortgage bond or promissory note stating that the unpaid balance is payable if specified conditions of default, defined in a loan covenant or bond indenture , should occur. Acceleration, exercisable at the option of the lender, calls for immediate payment of the remaining balance, plus interest due.

loan provision giving the lender the right to declare the entire amount immediately due and payable upon the violation of a specific provision of the loan, such as failure to make payments on time.

a loan provision giving the lender the right to declare the entire amount immediately due and payable upon the violation of a specific loan provision, such as failure to make payments on time.

Example: Collins sells her house to Baker, who assumes the existing 8% interest rate mortgage. They do not notify the lender of the sale. Clause 17 in the mortgage states that the full principal accelerates unless the lender approves of the sale. Collins must now pay the balance of the principal.