(1) A term providing that one party or his or her successor in interest may accelerate payment or performance or require collateral or additional collateral "at will" or "when he or she deems himself or herself insecure" or in words of similar import must be construed to mean that he or she has power to do so only if he or she 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.
Structure Code of Alabama
Section 7-2A-101 - Short Title.
Section 7-2A-103 - Definitions and Index of Definitions.
Section 7-2A-104 - Leases Subject to Other Statutes.
Section 7-2A-105 - Territorial Application of Article to Goods Covered by Certificate of Title.
Section 7-2A-107 - Waiver or Renunciation of Claim or Right After Default.