Acceleration – A clause in a loan agreement that protects the lender by requiring the borrower to immediately repay the loan (both the principal and all accrued interest) if certain conditions occur. Institutional credit operations also include revolving and non-revolving credit options. However, they are much more complicated than retail contracts. They may also include the issuance of bonds or a credit consortium in which several lenders invest in a structured credit product. After reading the credit agreement thoroughly, Sarah accepts all the conditions described in the agreement by signing it. The lender also signs the credit agreement; After the contract is signed by both parties, it becomes legally binding. Why do I need a credit agreement for the people I trust the most? A credit agreement isn`t a sign that you`re not trusting someone, it`s just a document you should always have in writing when lending money, just like having your driver`s license with you when you`re driving a car. The people who make it difficult for you to want a written loan are the same people you should worry about the most – you always have a credit agreement when you lend money. . . .