Acceleration is the action taken by a lender demanding early repayment of the entire loan balance when a borrower defaults on the terms of the loan agreement.
A covenant in a loan agreement where the borrower promises that the loan in question will rank equally with its other defined debts, ensuring no preferential treatment among creditors.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.