Alabama § 7-1-309 Option to Accelerate at Will

Alabama Statutes

§ 7-1-309 — Option to Accelerate at Will

Alabama § 7-1-309

Title 7Commercial Code

Art. 1General Provisions

Part 3Territorial Applicability; Parties’ Power to Choose Applicable Law

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Bluebook

Ala. Code § 7-1-309 (2026).

Text

A term providing that one party or that party’s successor in interest may accelerate payment or performance or require collateral or additional collateral “at will” or when the party “deems itself insecure,” or words of similar import, means that the party has power to do so only if that party in good faith believes that the prospect of payment or performance is impaired. The burden of establishing lack of good faith is on the party against which the power has been exercised.

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A term providing that one party or that party’s successor in interest may accelerate payment or performance or require collateral or additional collateral “at will” or when the party “deems itself insecure,” or words of similar import, means that the party has power to do so only if that party in good faith believes that the prospect of payment or performance is impaired. The burden of establishing lack of good faith is on the party against which the power has been exercised.