Sec. 1.309. OPTION TO ACCELERATE AT WILL. A term providing that one 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.
Added by Acts 2003, 78th Leg., ch. 542, Sec. 1, eff. Sept. 1, 2003.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 1 - General Provisions
Subchapter C. Territorial Applicability and General Rules
Section 1.301. Territorial Application of the Title; Parties' Power to Choose Applicable Law
Section 1.302. Variation by Agreement
Section 1.303. Course of Performance, Course of Dealing, and Usage of Trade
Section 1.304. Obligation of Good Faith
Section 1.305. Remedies to Be Liberally Administered
Section 1.306. Waiver of Renunciation of Claim or Right After Breach
Section 1.307. Prima Facie Evidence by Third-Party Documents
Section 1.308. Performance or Acceptance Under Reservation of Rights