By Brad MacLiver
Authorship and profile at Google
A provision of many RI pharmacy business loans and commercial leases is an acceleration clause. The acceleration clause in the loan/lease agreements allows the lender to accelerate their collection of payments contingent on an event occurring. These events may include lack of payment by the borrower, failure to keep the property adequately insured, failing to pay tax assessments, not maintaining the property, selling the property/asset, etc.
Lenders see the acceleration clause as a vital tool in their business loan and commercial lease programs. Lease and loan documents may not specifically address the foreclosure of a property or the repossession of an asset and this is where the acceleration clause takes effect. Without this clause, the lender would only be capable of foreclosing on one missed payment at a time. With the acceleration clause in place, despite whatever event kicks it into gear, the lender can demand immediate, full payment of all remaining fees and balances.
The pharmacy business loan or lease documents provided to theRhode Island Rhode Island
Tips:
1. If aRhode Island
2. If a RI pharmacy can catch up on their payments they can reinstate the business loan before the acceleration starts.
3. States have different rules requiring notification of an acceleration clause being exercised. Pharmacy owners should understand the laws in the state where they operate. Lack of knowledge is not an excuse.
4. When an acceleration clause is exercised on a commercial lease, there is the possibility the landlord cannot collect rent from both the defaulting tenant and a new tenant at the same time. To save themselves some money, pharmacy owners inRhode Island
5. Lenders prefer not to have to go through the foreclosure process, so if your pharmacy is headed in that direction start talking with the lender about finding a solution. Communication with the lender is a good thing.
6. Some pharmacy business loans and commercial leases require a “personal” guarantee from the business owner. This means that the business owner’s personal assets and credit will become involved in the event of a default. The “corporate” status of the business will not keep the lender from seizing the personal assets.
When considering financing aRhode Island
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Authorship and profile at Google
A provision of many RI pharmacy business loans and commercial leases is an acceleration clause. The acceleration clause in the loan/lease agreements allows the lender to accelerate their collection of payments contingent on an event occurring. These events may include lack of payment by the borrower, failure to keep the property adequately insured, failing to pay tax assessments, not maintaining the property, selling the property/asset, etc.
Lenders see the acceleration clause as a vital tool in their business loan and commercial lease programs. Lease and loan documents may not specifically address the foreclosure of a property or the repossession of an asset and this is where the acceleration clause takes effect. Without this clause, the lender would only be capable of foreclosing on one missed payment at a time. With the acceleration clause in place, despite whatever event kicks it into gear, the lender can demand immediate, full payment of all remaining fees and balances.
The pharmacy business loan or lease documents provided to the
Tips:
1. If a
2. If a RI pharmacy can catch up on their payments they can reinstate the business loan before the acceleration starts.
3. States have different rules requiring notification of an acceleration clause being exercised. Pharmacy owners should understand the laws in the state where they operate. Lack of knowledge is not an excuse.
4. When an acceleration clause is exercised on a commercial lease, there is the possibility the landlord cannot collect rent from both the defaulting tenant and a new tenant at the same time. To save themselves some money, pharmacy owners in
5. Lenders prefer not to have to go through the foreclosure process, so if your pharmacy is headed in that direction start talking with the lender about finding a solution. Communication with the lender is a good thing.
6. Some pharmacy business loans and commercial leases require a “personal” guarantee from the business owner. This means that the business owner’s personal assets and credit will become involved in the event of a default. The “corporate” status of the business will not keep the lender from seizing the personal assets.
When considering financing a
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