ACCRUAL, ACCELARATION CLAUSE

A provision or clause in a mortgage, note, bond, deed of trust or other credit agreement, that requires the maker, drawer or other obligor to pay part or all of the balance sooner than the date or dates specified for payment upon the occurrence of some event or circumstance described in the contract. Such clause operates when there has been a default such as nonpayment of principal, interest, or failure to apply insurance premiums. (General Motors Acceptance Corp v. Shuey, 243 Ky. 74. Cf. Radiowealth Finance Company v. Del Rosario, 335 SCRA 288 [2000]; Selegna Management and Development Corporation v. United Coconut Planters Bank, 489 SCRA 125 [2006]; Premiere Development Bank v. Central Surety & Insurance Company, Inc., 579 SCRA 359 [2009])