Which clause allows a lender to demand full repayment of the loan if there is a default?

The acceleration clause is a provision in a loan agreement that allows the lender to require the borrower to repay the entire balance of the loan immediately if the borrower defaults on the terms of the loan. This means that if certain conditions are met, such as failure to make timely payments or breach of other terms specified in the mortgage contract, the lender has the right to declare the full amount due and payable.

This clause serves the purpose of protecting the lender's financial interest; it ensures that if a borrower is unable to meet their obligations, the lender can take swift action to recover the funds lent without having to wait for the normal repayment schedule to play out. An acceleration clause often acts as a deterrent against default, as it signifies to borrowers the seriousness of adhering to the loan terms.

In contrast, a default clause specifically outlines the nature of defaults and may detail the rights and remedies available to the lender in the event of a default, but it does not compactly state the right to accelerate the full repayment of the loan. An alienation clause pertains to the borrower's right to transfer property, and a power of sale clause provides the lender with the right to sell the property to recover amounts owed but does not inherently invoke full repayment obligations. Therefore, the focus