70A-2a-109 - Option to accelerate at will. - Utah Statutes

State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-02a > 70a-2a-109

70A-2a-109. Option to accelerate at will.
(1) A term providing that one party or his successor in interest may accelerate payment orperformance or require collateral or additional collateral "at will" or "when he deems himselfinsecure" or in words of similar import must be construed to mean that he has power to do soonly if he in good faith believes that the prospect of payment or performance is impaired.
(2) With respect to a consumer lease, the burden of establishing good faith underSubsection (1) is on the party who exercised the power; otherwise the burden of establishing lackof good faith is on the party against whom the power has been exercised.

Enacted by Chapter 197, 1990 General Session

State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-02a > 70a-2a-109

70A-2a-109. Option to accelerate at will.
(1) A term providing that one party or his successor in interest may accelerate payment orperformance or require collateral or additional collateral "at will" or "when he deems himselfinsecure" or in words of similar import must be construed to mean that he has power to do soonly if he in good faith believes that the prospect of payment or performance is impaired.
(2) With respect to a consumer lease, the burden of establishing good faith underSubsection (1) is on the party who exercised the power; otherwise the burden of establishing lackof good faith is on the party against whom the power has been exercised.

Enacted by Chapter 197, 1990 General Session

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-02a > 70a-2a-109

70A-2a-109. Option to accelerate at will.
(1) A term providing that one party or his successor in interest may accelerate payment orperformance or require collateral or additional collateral "at will" or "when he deems himselfinsecure" or in words of similar import must be construed to mean that he has power to do soonly if he in good faith believes that the prospect of payment or performance is impaired.
(2) With respect to a consumer lease, the burden of establishing good faith underSubsection (1) is on the party who exercised the power; otherwise the burden of establishing lackof good faith is on the party against whom the power has been exercised.

Enacted by Chapter 197, 1990 General Session