Alice Johnson issued a note payable over 24 equal monthly installments.The note contained a provision making the entire balance due immediately if Alice defaulted on two consecutive installments.The note contained:

Question

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The provision in the note that makes the entire balance due immediately if Alice defaults on two consecutive installments is an acceleration clause. This clause allows the lender to demand payment of the entire balance of the note if the borrower defaults on the payment terms.

Alice Johnson Issued a Note Payable Over 24 Equal Monthly