17.3 Requirement of Acceleration

• Library: Real Estate Practice Deskbook (2019 Ed.)

B. (§17.3) Requirement of Acceleration

An acceleration clause is solely for the benefit of the holder of the indebtedness secured by the applicable lien instrument, and it confers on such holder an option to treat the entire debt as due. Capital City Motors, Inc. v. Thomas W. Garland, Inc., 363 S.W.2d 575, 578 (Mo. 1962). An obligee that decides to exercise the option is required to perform some affirmative act evidencing the intention to take advantage of the acceleration provision before the mortgagor makes a tender of only the amount actually due. Until the obligee does so, the mortgagor may preclude an acceleration and cure the default by proper tender of only the delinquent amount. Miller v. Jones, 635 S.W.2d 360, 362 (Mo. App. S.D. 1982).

In In re Hall, 265 B.R. 435 (Bankr. W.D. Mo. 2001), Judge Koger stated that, even though the deed of trust contained language that acceleration was "automatic" upon default...