Written by attorney Robert Walter Dapelo

Reasons for Acceleration of Promissory Notes in New York State

a. Misrepresentation. The making of any misrepresentation by Maker to Payee for the purpose of obtaining credit or an extension of credit; b. Creditor's Meeting. The calling of a meeting of Maker's creditors; c. Committee of Creditors. The appointment of a committee of Maker's creditors; d. Assignment for Benefit of Creditors. The making of an assignment for the benefit of Maker's creditors; e. Receivership. The filing of a voluntary or involuntary petition for or the appointment of a receiver of Maker's property; f. Bankruptcy. The filing of a voluntary petition by or an involuntary petition against Maker under any provision of the federal Bankruptcy Act; g. Attachment. The issuance of a warrant of attachment or for distraint against any of Maker's property; h. Tax Lien. The issuance of a notice of tax lien against Maker or Maker's property; i. Judgments. The entry of a judgment against Maker or Maker's property; j. Nonpayment of Taxes. Maker's failure to pay, withhold, collect, or remit any tax or tax deficiency when assessed or due; k. Death. Maker's death; l. Dissolution of Business. The dissolution of Maker's business; m. Bulk Sale. The making of a bulk sale by Maker or the giving of notice of intent to do so; n. Encumbering Accounts Receivable or Property. The mortgage, pledge, or assignment of Maker's accounts receivable or other property; o. Suspension or Liquidation of Business. The suspension or liquidation of Maker's usual business; p. Failure to Furnish Financial Information. Maker's failure, after demand by Payee, to furnish financial information to Payee or permit Payee to examine any of Maker's books of account or records; q. Default in Performance of Other Obligations. r. Maker's failure to pay any other note or obligation held by Payee when due; or s. Impairment of Financial Responsibility. t. Whenever, in Payee's sole opinion, Maker's financial responsibility becomes impaired or unsatisfactory. All or some of the above reasons are permissible to cause a promissory note to become due and payable immediately.

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