§ 26430 Bond Default Acceleration Clause

• •A contract for bonds can say what happens if someone breaks the rules.
• •The contract can say when the bonds have to be paid back early.
• •The contract can also say how to fix the problem if someone breaks the rules.

You borrow money from a bank to buy a house, and the contract says you have to pay it back early if you don't pay on time.

If you miss a payment, the bank can make you pay back the whole loan right away. But the contract might also say you can fix it by paying what you missed plus a fee.