Which of the following provides that all future interest and principal obligations on a loan become immediately due when default occurs?

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An acceleration provision is a clause in a loan agreement that requires the borrower to immediately repay the entire outstanding balance on a loan if certain events occur. One of these events is default, which means the borrower has failed to make payments or breached other terms of the loan agreement. Therefore, when default occurs, the acceleration provision allows the lender to demand immediate payment of all principal and interest owed.

Which of the Following Provides That All Future Interest and Principal