§ 90032 Bond Default Acceleration Clauses

• •A bond agreement can say what happens if the borrower breaks the rules.
• •It can explain when the lender can ask for the money back early.
• •The agreement can also say how to fix the problem if the borrower breaks a rule.

You borrow money from a bank to buy a house, and the agreement says you must pay every month. If you stop paying, the bank can ask for all the money back at once.

The bond agreement (like your house loan) can list what happens if you don’t follow the rules (like missing payments). It can say the bank can demand all the money early, but it might also say how you can fix it (like paying the missed amount plus a fee).