Acceleration Clause
An Acceleration Clause is a clause found in a promissory note that allows the note holder (lender) to require the entire amount of the promissory note due immediately. An Acceleration Clause is typically triggered after a startup incurs an “event of default” (including any applicable cure period).
About the Author
Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Click here to learn more about his practice.
