North Dakota Code 41-02.1-09 – (2A-109) Option to accelerate at will
Current as of: 2023 | Check for updates
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1. 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 he or she deems himself or herself insecure” or in words of similar import must be construed to mean that the party has power to do so only if the party in good faith believes that the prospect of payment or performance is impaired.
Terms Used In North Dakota Code 41-02.1-09
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
2. With respect to a consumer lease, the burden of establishing good faith under subsection 1 is on the party who exercised the power. Otherwise, the burden of establishing lack of good faith is on the party against whom the power has been exercised.