Finance Deals & Syndicated Lending · glossary

Acceleration

The lenders' right to cancel the facilities and demand every loan back at once. It needs a continuing Event of Default, and the Agent must act if the Majority Lenders direct it. Lenders threaten it more often than they use it, because it usually turns a problem into a loss. Clause 19.10 · Chapter 10

Explained in Chapter 10, Events of Default, of Finance Deals & Syndicated Lending.

How it comes up, in Chapter 10
A facility agreement is full of promises, and clause 19 says what happens when the borrower breaks one. It lists nine events of default. While one of them is continuing, the lenders may cancel the facilities and demand all the loans back at once. This is called acceleration.
Read Chapter 10, Events of Default →

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