Contracts
In Louisiana, an 'acceleration clause' in a mortgage means the lender can:
ASpeed up the closing process
BDemand immediate full repayment of the outstanding balance if the borrower defaults on any payment✓ Correct
CAccelerate the interest rate increase in an ARM
DReduce the loan term with additional payments
Explanation
An acceleration clause allows the lender to declare the entire outstanding loan balance immediately due and payable if the borrower defaults (typically by missing payments) — triggering the foreclosure process if the borrower cannot pay.
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