Finance
What is an acceleration clause in a mortgage?
AA clause allowing faster payoff
BA clause allowing the lender to demand the entire loan balance immediately upon default or violation of loan terms✓ Correct
CA provision for increasing monthly payments
DA clause for reducing the interest rate over time
Explanation
An acceleration clause allows the lender to call the entire outstanding loan balance due and payable immediately if the borrower defaults, fails to maintain insurance or taxes, or violates other loan terms. This triggers the foreclosure process.
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