12A:2A-109. Option to accelerate at will
12A:2A-109. Option to accelerate at will.
(1) 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 himself or herself 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.
(2) With respect to a consumer lease, the burden of establishing good faith under subsection (1) is on the party who exercised the power; otherwise the burden of establishing lack of good faith is on the party against whom the power has been exercised.
L.1994,c.114,s.1.
Section: Previous 12a-2a-102 12a-2a-103 12a-2a-104 12a-2a-105 12a-2a-106 12a-2a-107 12a-2a-108 12a-2a-109 12a-2a-201 12a-2a-202 12a-2a-203 12a-2a-204 12a-2a-205 12a-2a-206 12a-2a-207 Next
Last modified: October 11, 2016