Contracts
In Indiana, what is the effect of an 'acceleration clause' in a mortgage or deed of trust?
AIt allows the lender to raise the interest rate if the borrower defaults
BIt makes the entire remaining loan balance immediately due upon default✓ Correct
CIt speeds up the amortization schedule
DIt allows early payoff without penalty
Explanation
An acceleration clause allows the lender to declare the entire outstanding loan balance immediately due and payable if the borrower defaults on loan payments or violates other terms of the mortgage.
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