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Texas Business & Commerce Code

§ 1.309 — OPTION TO ACCELERATE AT WILL

BC § 1.309Title 1. UNIFORM COMMERCIAL CODE · Ch. 1. GENERAL PROVISIONS · Art. C. TERRITORIAL APPLICABILITY AND GENERAL RULES

Statute text

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

Legislative history

Added by Acts 2003, 78th Leg., ch. 542, Sec. 1, eff. Sept. 1, 2003.

Source: Texas Business & Commerce Code § 1.309 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.