| PREVIOUS SECTION | Go back to sections | Go back to the chapter | Go back to the N.J. Statutes homepage | NEXT SECTION |
New Jersey Statutes, Title: 12A, COMMERCIAL TRANSACTIONS
Chapter 2a:
Section: 12A:2a-109: Option to accelerate at will
12A:2A-109. Option to accelerate at will.
(1) A term providing that one party or the party's successor in interest may accelerate payment or performance or require collateral or additional collateral "at will" or "when the party 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.
(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.
L.1994,c.114,s.1.
This section added to the Rutgers Database: 2013-06-10 16:36:30.
Older versions of 12a:2a-109 (if available):
Court decisions that cite this statute:
CLICK HERE.