Acceleration Prohibited Clause Samples
The 'Acceleration Prohibited' clause prevents a lender or party from demanding immediate repayment of the entire outstanding balance of a loan or obligation before its scheduled maturity, even if certain triggering events occur. In practice, this means that if a borrower defaults on a payment or breaches a minor term, the lender cannot require the full amount to be paid at once and must instead follow the original payment schedule. This clause protects borrowers from the risk of sudden, large financial demands and ensures that repayment terms remain predictable, thereby providing stability and reducing the risk of financial hardship due to technical or minor defaults.
Acceleration Prohibited. The acceleration of the time or schedule of any payment due under the Plan is prohibited except as expressly provided in regulations and administrative guidance promulgated under Section 409A of the Code (such as accelerations for domestic relations orders and employment taxes). It is not an acceleration of the time or schedule of payment if the Employer waives or accelerates the vesting requirements applicable to a benefit under the Plan.
Acceleration Prohibited. The acceleration of the time or schedule of any payment due under this Agreement is prohibited except as provided in regulations and administrative guidance promulgated under Section 409A of the Code.
Acceleration Prohibited. 17 Section 7. Vesting: ...............................................17