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The Acceleration Clause in a Loan Agreement Allows the Lender

Question 48

Multiple Choice

The acceleration clause in a loan agreement allows the lender to


A) collect the entire unpaid balance immediately if you miss a payment.
B) add on new collateral to an existing installment loan.
C) collect all unpaid interest immediately if you miss a payment.
D) step up your monthly payments from,say,$100 a month to $150 to have the loan repaid more rapidly.

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