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Simple English definitions for legal terms
acceleration
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A quick definition of acceleration:
Acceleration: When you borrow money, you agree to pay it back by a certain date. But if you don't make your payments on time, the lender can make you pay back everything you owe right away. This is called acceleration. It means you have to pay back the whole amount of money you borrowed, instead of just making your regular payments.
A more thorough explanation:
Definition: Acceleration is when a loan agreement's due date is moved up so that the borrower has to pay back the entire amount immediately. This happens when the borrower breaks the terms of the agreement.
Example: Let's say you take out a loan to buy a car. The loan agreement says you have to make monthly payments for five years. But if you miss a payment or break another rule in the agreement, the lender can accelerate the loan. This means you have to pay back the entire amount you borrowed right away, instead of over five years.
Explanation: The example shows how acceleration works in a loan agreement. If the borrower doesn't follow the rules, the lender can demand payment of the entire loan immediately. This is a way for the lender to protect themselves from the risk of the borrower not paying back the loan.