Noah missed several monthly payments, and the lender sent a notice stating that unless the default is cured, the entire unpaid loan balance will become immediately due. Which clause is the lender invoking?
Correct Answer
D) An acceleration clause calling the full debt due
An acceleration clause allows the lender to demand immediate payment of the entire unpaid balance after a qualifying default. That is exactly what the lender is threatening when it says the full debt will become due unless Noah cures the default.
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