§ 25-1-309. Option to accelerate at will. - North Carolina Statutes

§ 25‑1‑309. Option to accelerate at will.

A term providing that oneparty or that party's successor in interest may accelerate payment orperformance or require collateral or additional collateral "at will"or when the party "deems itself insecure," or words of similarimport, means that the party has power to do so only if that party in goodfaith believes that the prospect of payment or performance is impaired. Theburden of establishing lack of good faith is on the party against which thepower has been exercised. (1965, c. 700, s. 1; 2006‑112, s. 1.)