§ 25-2A-109. Option to accelerate at will. - North Carolina Statutes

§25‑2A‑109.  Option to accelerate at will.

(1)        A term providingthat one party or his successor in interest may accelerate payment orperformance or require collateral or additional collateral "at will"or "when he deems himself insecure" or in words of similar importmust be construed to mean that he has power to do so only if he in good faithbelieves that the prospect of payment or performance is impaired.

(2)        With respect to aconsumer lease, the burden of establishing good faith under subsection (1) ofthis section is on the party who exercised the power; otherwise, the burden ofestablishing lack of good faith is on the party against whom the power has beenexercised. (1993, c. 463, s. 1.)