§ 50730 Bond Default Acceleration Clauses

• •A bond agreement can say what happens if the borrower breaks the rules.
• •It can explain when the lender can ask for the money back early.
• •The agreement can also say how to fix the problem and avoid paying early.

You borrow money from a bank to buy a house, and the agreement says you must pay it back in 30 years.

If you stop making payments, the bank can use the agreement to make you pay back the whole loan right away. But the agreement might also say you can fix it by paying what you missed plus a fee.