Which of the following gives the lender the right or option to demand the loan balance owed if a default occurs.

Question

Quizplus · Accepted Answer

An acceleration clause gives the lender the right to demand full repayment of the loan balance if the borrower defaults on the loan. This clause accelerates the loan, making the entire loan amount due immediately instead of over the originally agreed-upon repayment schedule. A nonrecourse clause limits the lender's options for repayment to the collateral securing the loan, and an assignment clause allows the lender to transfer the loan to another party. A default clause outlines the consequences of default but does not give the lender the right to demand immediate repayment.

Which of the Following Gives the Lender the Right or Option