Indiana § 26-1-2.1-109 Option to accelerate at will

Indiana Statutes

§ 26-1-2.1-109 — Option to accelerate at will

Indiana § 26-1-2.1-109

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 2.1Leases

This text of Indiana § 26-1-2.1-109 (Option to accelerate at will) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-2.1-109 (2026).

Text

(1)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 the party insecure" or in words of similar import must be construed to mean that the party has power to do so only if the party in good faith believes that the prospect of payment or performance is impaired.

(2)With respect to a consumer lease, the burden of establishing good faith under subsection (1) is on the party who exercised the power; otherwise the burden of establishing lack of good faith is on the party against whom the power has been exercised.

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(1) 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 the party insecure" or in words of similar import
must be construed to mean that the party has power to do so only if the
party in good faith believes that the prospect of payment or
performance is impaired.
(2) With respect to a consumer lease, the burden of establishing
good faith under subsection (1) is on the party who exercised the
power; otherwise the burden of establishing lack of good faith is on the
party against whom the power has been exercised.