A lender who, through a registered security interest, has the right to seize and sell specific assets of a borrower to collect a debt typically has included an acceleration clause in its standard form loan agreement.

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An acceleration clause is commonly included in standard form loan agreements to allow a lender to demand full payment of the outstanding balance if the borrower defaults on the loan. This gives the lender the right to seize and sell the specific assets that have been identified as collateral through a registered security interest.

A Lender Who, Through a Registered Security Interest, Has the Right