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TeachMeFinance.com acceleration clause -- a clause commonly included in mortgages and bonds that gives the holder the right to demand the entire outstanding balance be paid in the event of default. Without this clause, the mortgagee may have to file separate foreclosure suits as each installment of the mortgage debt falls due and is in default. another definition... acceleration clause -- A rider, usually contained in an indenture contract, mortgage or other agreement, stipulating that the outstanding balance becomes due for payment if particular defaulting conditions should occur. These include inability to fulfill principal and interest obligations, and failure to pay taxes on hypothecated property. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.