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"related_snippets": [], "updated": "2026-04-03T05:45:28+00:00", "also_ask": ["What triggers should be included or excluded to strategically control automatic acceleration?", "How can the clause be drafted to avoid unintended or premature acceleration events?", "What are the most common enforceability challenges to automatic acceleration in court?", "How does this clause compare to optional acceleration in terms of creditor leverage and risk?", "What are the key risks for both parties if the clause is too broad or too narrow?"], "drafting_tip": "Specify triggering events, clarify notice requirements, and define consequences to ensure predictability, prevent disputes, and facilitate enforcement.", "explanation": "The Automatic Acceleration clause stipulates that certain obligations or payments under an agreement become immediately due and payable upon the occurrence of specified triggering events, such as default or insolvency. In practice, this means that if a borrower fails to meet their obligations or enters bankruptcy, the lender can demand full repayment of the outstanding balance without waiting for the original maturity date. This clause serves to protect the lender by allowing them to act swiftly in response to increased risk, ensuring they are not left exposed in the event of a significant breach or financial distress by the other party."}, "json": true, "cursor": ""}}