LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeCommercial CodeDiv. 1Ch. 3§ 1309 Good Faith Acceleration Rights

§ 1309 Good Faith Acceleration Rights

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 1309 Good Faith Acceleration Rights

Key Takeaways

  • •If a contract says someone can demand money or extra security 'whenever they want' or 'if they feel unsafe,' they can only do this if they truly believe the other person might not pay or do what they promised.
  • •The person who is being asked for money or extra security has to prove that the other person is not being honest about their worries.

Example

You take a loan to buy a car, and the contract says the bank can ask for more money back early if they 'feel insecure.'

The bank can only ask for the money early if they really think you might not pay them back. If they ask and you think they’re just being mean, you have to prove they don’t actually have a good reason to worry.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 1309 Good Faith Acceleration Rights

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. (Added by renumbering Section 1208 by Stats. 2006, Ch. 254, Sec. 27. Effective January 1, 2007.)

Last verified: January 23, 2026

Key Terms

good faithat willdeems itself insecurelack of good faith

Related Statutes

  • § 1302 Contractual Modification Limits
  • § 1304 Good Faith Contract Obligation
  • § 2306 Output And Requirements Contracts
  • § 2311 Contract Performance Specifications
  • § 10301 Lease Contract Enforcement

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 1309.
View Official Source