In these states, acceleration is irrevocable--exercising the acceleration clause
in the mortgage note turns an obligation to make installment payments into an "indivisible" obligation.
A subjective acceleration clause
is a provision in a debt agreement that states that the lender has the right to accelerate the payments of the obligation under conditions that are not objectively determinable.
While acceleration clauses
provide owners with a leg-up in any lease break negotiation, the advantage is particularly powerful when an owner does not want the tenant to break because the owner can leverage the tenant's liability to its advantage and demand a cash payment for the tenant's departure.
Its glossary (available in the articles section) will help you make sure you know the difference between such terms as "acceleration clause
" (a clause in a mortgage that lets the lender demand payment of the outstanding loan balance for various reasons) and a "due-on-sale provision" (a mortgage provision that lets the lender demand repayment in full if the borrower sells the property that serves as security for the mortgage).
The central question is whether the call language in the loan agreement constitutes a "subjective acceleration clause
" or a "demand call." How this question is answered will affect whether all or only a portion of the loan will be classified as a current liability in the balance sheet of the obligor.
The warrants are subject to an acceleration clause
such that if the volume weighted average price of the Common Shares is greater than $0.30 per share for a period of 20 consecutive trading days at any time during the period of time commencing after Closing until the expiry of the Warrants, the Company may at its option elect to accelerate the expiry date of the Warrants, such that the Warrants will expire on the 20th day after the date on which notice of such acceleration is given by the Company.
The Warrants are subject to an acceleration clause
, whereby, if after four months and one day following the date the Warrants are issued, the closing price of the Companys Common Shares is equal to or exceeds $1.90 for 20 consecutive trading days (with the 20th such trading date hereafter referred to as the Eligible Acceleration Date), the Warrant expiry date shall accelerate to the date which is 30 calendar days following the date a press release is issued by the Company announcing the reduced warrant term, provided, no more than five business days following the Eligible Acceleration Date: (i) the press release is issued; and (ii) notices are sent to all warrant holders.
4th DCA 1999) (holding that when an installment contract contains an optional acceleration clause
, the statute of limitations for recovering under the contract may commence running on payments not yet due if the holder exercises its right to accelerate the total debt because of a default).
Each warrant entitles the holder to purchase its one additional common share at a price of CAD1.20 per share for a period of 12 months from the date of closing, subject to an exercise acceleration clause
negative pledge and a cross acceleration clause
that captures material
Among other aspects, the Sukuk benefits from a change of control, a negative pledge and a cross acceleration clause
First, when selling an apartment, try to build in an extended close date--maybe even try to ask the purchaser of the apartment if there can be an acceleration clause
for the close date if the sponsor is ready to close sooner rather than later.
However, according to the statement, that agreement shouldn't be cancelable by the lender because of a subjective acceleration clause