The provision in a trust deed or mortgage that allows the lender to demand full repayment of the outstanding balance immediately in the event of default is known as:

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Aescalator clause.
Bforfeiture clause.
Cacceleration clause.
Djudgment clause.

✓ Correct answer: C. acceleration clause. This clause safeguards the lender's interest and typically serves as an initial stage in the foreclosure process. Despite this, borrowers still have opportunities to reinstate monthly payments and should be aware of their available options.

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The provision in a trust deed or mortgage that allows the lender to demand full repayment of the outstanding balance immediately in the event of default is known as:

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