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0 tracked cards Supplemental - Not MEE July 2026

A secured loan agreement allows the lender to accelerate if it deems itself insecure. The debtor is current on payments, but the lender has evidence that collateral is missing and that a tax lien has been filed.
What standard governs acceleration under the insecurity clause?

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The debtor's current payment status makes an insecurity clause legally irrelevant. The secured party may accelerate if it in good faith believes the prospect of payment or performance is impaired. The secured party may accelerate for any reason, including a reason it knows is false. The secured party may accelerate only if the debtor consents after the insecurity arises.

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