8.1A-309 - A-309. Option to accelerate at will. - Virginia Statutes

§ 8.1A-309. Option to accelerate at will.

A term providing that one party or that party's successor in interest mayaccelerate payment or performance or require collateral or additionalcollateral "at will" or when the party "deems itself insecure," or wordsof similar import, means that the party has power to do so only if that partyin good faith believes that the prospect of payment or performance isimpaired. The burden of establishing lack of good faith is on the partyagainst which the power has been exercised.

(1964, c. 219, § 8.1-208; 1974, c. 572; 2003, c. 353.)