Acceleration Clause: Canada Debt .ca defines Acceleration Clause

Bankruptcy Term Acceleration Clause

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Canada Debt has the definition to the bankruptcy and debt term Acceleration Clause. Finding answers to terms such as Acceleration Clause can be difficult, especially if there is more than one definition which is why we have created a page dedicated to financial terms dealing exclusively with debt. Acceleration Clause in financial terms means...

In debt and bankruptcy terms, the phrase / term 'Acceleration Clause' is used as follows:

Any clause in a contract which spells out that when certain actions are taken, the clause comes into effect. A common acceleration clause is the clause in a lease that says if a company goes into bankruptcy, three months rent is due as a preferred claim.