finance company. A nonbank company that deals in loans either by making them or by purchasing notes from another company that makes the loans directly to borrowers. commercial finance company. A finance company that makes loans to manufacturers and wholesalers. — Also termed commercial credit company. consumer finance company. A finance company that deals directly […]
acceleration clause. A loan-agreement provision that requires the debtor to pay off the balance sooner than the due date if some specified event occurs, such as failure to pay an installment or to maintain insurance. Cf. DE-MAND CLAUSE; INSECURITY CLAUSE. [Cases: Bills and Notes 129(2). C.J.S. Bills and Notes; Letters of Credit §§ 76, 92–100.]
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lease-purchase agreement. A rent-to-own purchase plan under which the buyer takes possession of the goods with the first payment and takes ownership with the final payment; a lease of property (esp. equipment) by which ownership of the property is transferred to the lessee at the end of the lease term. • Such a lease is
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demand clause. A provision in a note allowing the holder to compel full payment if the maker fails to meet an installment. Cf. ACCELERATION CLAUSE. [Cases: Bills and Notes 129(3). C.J.S. Bills and Notes; Letters of Credit§ 90.]