2025 Session
Last amended: 1989 session
§ 336.2A-109 — Option to Accelerate at Will
Plain-Language Summary
An option to accelerate at will or when a party feels insecure can only be exercised in good faith -- the party must genuinely believe payment or performance is at risk.
336.2A-109 OPTION TO ACCELERATE AT WILL.
A term providing that one party or the party’s successor in interest may accelerate payment or performance or require collateral or additional collateral “at will” or “when the party deems self insecure” or in words of similar import must be construed to mean that the party has power to do so only if the party in good faith believes that the prospect of payment or performance is impaired.
History:
1989 c 232 art 1 s 2A-109
History: History: 1989 c 232 art 1 s 2A-109
Practical Notes
If your lease lets the lessor demand early payment when they feel insecure, they must have a real reason to believe you might not pay.