Finance
In New York, an 'acceleration clause' in a mortgage allows the lender to:
AIncrease the interest rate if the borrower defaults
BDemand the entire outstanding loan balance become immediately due and payable upon the borrower's default✓ Correct
CTransfer the mortgage to another lender without the borrower's consent
DRequire a balloon payment at the end of the loan term
Explanation
An acceleration clause (also called a call clause) allows the lender to accelerate the mortgage — declaring the entire outstanding balance immediately due and payable — upon the borrower's default. Without an acceleration clause, a lender could only sue for the individual missed payments, not the entire balance.
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