South Carolina § 36-1-309 - Option to accelerate at will.
Full text of South Carolina South Carolina Code of Laws § 36-1-309 — Option to accelerate at will., with citation guidance and answers to common questions.
§ 36-1-309. 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.
HISTORY: 1962 Code SECTION 10.1-208; 1966 (54) 2716; former 1976 Code SECTION 36-1-208; 2014 Act No. 213 (S.343), SECTION 1, eff October 1, 2014.
OFFICIAL COMMENTS
Source: Former Section 1-208.
Changes from former law: Except for minor stylistic changes, this section is identical to former Section 1-208.
1. The common use of acceleration clauses in many transactions governed by the Uniform Commercial Code, including sales of goods on credit, notes payable at a definite time, and secured transactions, raises an issue as to the effect to be given to a clause that seemingly grants the power to accelerate at the whim and caprice of one party. This section is intended to make clear that despite language that might be so construed and which further might be held to make the agreement void as against public policy or to make the contract illusory or too indefinite for enforcement, the option is to be exercised only in the good faith belief that the prospect of payment or performance is impaired.
Obviously this section has no application to demand instruments or obligations whose very nature permits call at any time with or without reason. This section applies only to an obligation of payment or performance which in the first instance is due at a future date.
Editor's Note
2014 Act No. 213, SECTION 51, provides as follows:
"SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date."
Source: official South Carolina text · Last verified 2026-08-27
Frequently Asked Questions About South Carolina § 36-1-309
What does South Carolina Code of Laws § 36-1-309 cover?
Section 36-1-309 ("Option to accelerate at will.") is part of the South Carolina Code of Laws, the codified statutory law of South Carolina. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite South Carolina § 36-1-309?
A common citation format is "South Carolina Code of Laws § 36-1-309" (South Carolina). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of South Carolina law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Carolina official source linked on this page or consult a licensed South Carolina attorney.
How does South Carolina § 36-1-309 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Carolina can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in South Carolina.