Contracts
An acceleration clause in a Kentucky mortgage means:
AThe interest rate increases annually
BThe full loan balance becomes immediately due upon default✓ Correct
CThe borrower may pay off the loan faster without penalty
DThe loan term automatically shortens if rates fall
Explanation
An acceleration clause allows the lender to declare the entire loan balance immediately due and payable if the borrower defaults on any term of the mortgage, triggering the foreclosure process.
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