Insecurity Clause

Insecurity clause is a provision found in promissory notes that allows the lender to demand early repayment or take other actions if they become insecure about the borrower's ability to fulfill their obligations under the note. The inclusion of an insecurity clause provides additional protection for the lender in case the borrower's financial condition deteriorates or if other circumstances arise that raise concerns about the borrower's ability to repay the debt.

Banking