Default on interest triggers acceleration of debt and permits admission of insolvency petition; further tribunal proceedings directed.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Interpretation of loan agreement clauses treated monthly interest payable in advance as an event of default, so non-payment of interest triggers default and permits the lender to accelerate the debt and demand principal notwithstanding the stated loan term; a clause delaying sale of mortgaged property does not bar acceleration on interest default. Because interest remained unpaid, the petition under the insolvency law was properly admitted and remitted for further proceedings at the tribunal. The appellate tribunal set aside the impugned dismissal and directed listing before the adjudicating authority for continuation of the Section 7 process.....