Contracts

What is an 'acceleration clause' in an Idaho deed of trust or mortgage?

AA clause allowing the borrower to pay off the loan early
BA clause entitling the lender to demand the entire loan balance due immediately upon default✓ Correct
CA clause increasing the interest rate over time
DA clause requiring faster principal payments

Explanation

An acceleration clause gives the lender the right to declare the entire unpaid loan balance immediately due and payable upon the borrower's default. Without an acceleration clause, the lender could only sue for missed payments individually.

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