What happens if the acceleration clause is activiated for the loan I have invested in?
September 22, 2024
It is essential for providers that borrowers make regular repayments. If they don’t, then the provider has to recover the amount owed. If the loan provider offered the buyback guarantee for the loan, in the event of a delay in repayments for more than 60 days, the provider is obliged to return investors the entire principal owed and pay interest (note: for some loans, the buyback period may be shorter). If a loan is offered without the buyback guarantee, the acceleration clause is activated and the process of recovery by the provider is initiated. Investors’ claims are then satisfied from the recovered amount.
Share the article
Most read articles
All articlesDo you like our articles?
Subscribe to the newsletter and do not miss a thing from the world of investment. By subscribing, you consent to the processing of personal data.