Almost all installment loan contracts contain an acceleration clause stating that after a specific number of payments are unpaid,the loan is in default,and all remaining installments are due and payable on demand of the creditor.

Question

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This statement is true. An acceleration clause in a loan contract allows the lender to demand full repayment of the loan if the borrower misses a certain number of payments or otherwise fails to meet the terms of the agreement. This is a common feature of installment loans, such as car loans or mortgages. Once the loan is in default, the lender can take legal action to collect the remaining balance of the loan.

Almost All Installment Loan Contracts Contain an Acceleration Clause Stating