A term providing that one (1) party or that party's successor in interest may accelerate payment or performance or require collateral or additional collateral “at will” or when the party “deems itself insecure”, or words of similar import, means that the party has power to do so only if that party in good faith believes that the prospect of payment or performance is impaired. The burden of establishing lack of good faith is on the party against which the power has been exercised.
Structure 2021 Tennessee Code
Title 47 - Commercial Instruments and Transactions
Chapter 1 - Uniform Commercial Code — General Provisions
Part 3 - Territorial Applicability and General Rules
§ 47-1-304. Obligation of Good Faith
§ 47-1-306. Waiver or Renunciation of Claim or Right After Breach
§ 47-1-307. Prima Facie Evidence by Third-Party Documents