Acceleration Clauses in Florida Promissory Notes
An acceleration clause in a promissory note allows the holder to declare the entire unpaid balance immediately due upon the maker's default. While commonly associated with mortgages, acceleration clauses appear in all types of Florida lending instruments and installment contracts.
Enforcement Requirements
Florida courts enforce acceleration clauses but require the holder to follow the note's procedures precisely. If the note mandates written notice of default with a specified cure period, the holder must comply before declaring the balance due. Courts may invalidate an acceleration if the holder failed to give proper notice, accelerated before the cure period expired, or waived the right to accelerate through prior conduct.
Statute of Limitations
Florida imposes a five-year statute of limitations on accelerated promissory notes under Section 95.11(2)(b). The clock starts running on the date of acceleration. The Florida Supreme Court's landmark Bartram decision established that dismissal of a foreclosure action de-accelerates the note, resetting the limitations period and allowing the holder to re-accelerate and pursue a new action.
Related Terms
Barnes Walker Business Law
Barnes Walker advises lenders and borrowers on promissory note enforcement and acceleration disputes throughout Southwest Florida. Contact us for legal guidance.
Florida Law Reference
Fla. Stat. Ch. 697
Defines mortgages as liens on real property and establishes requirements for mortgage creation, assignment, and satisfaction in Florida.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC