Code of Alabama
Ala. Code § 7-1-208 (2026)
Option to Accelerate at Will.
✓ official Alabama Legislature (ALISON) text, current July 2026
Repealed Act 2004-524, p. 1070, §1, effective January 1, 2005.
(Acts 1965, No. 549, p. 811.)
Notes of Decisions
Cited in 4
cases, 1987–1991 · leading case: Farmers & Merchants Bank of Centre v. Hancock, 506 So. 2d 305 (Ala. 1987).
Farmers & Merchants Bank of Centre v. Hancock, 506 So. 2d 305 (Ala. 1987). “The Bank cites § 7-1-208, Code 1975, which provides: "A term providing that one party or his successor in interest may accelerate payment or performance or require collateral or additional collateral `at will' or `when he deems himself insecure' or in words of similar import…”
Pavco Indus., Inc. v. First Nat. Bank of Mobile, 534 So. 2d 572 (Ala. 1988). “3 We pretermit discussion of whether such an action would lie in an appropriate instance, because the committee comments to § 7-1-208 except demand instruments from that section's operation: "Obviously this section has no application to demand instruments or obligations whose…”
POWER Equip. v. First Alabama Bank, 585 So. 2d 1291 (Ala. 1991). “1988), this Court concluded that this provision does not apply to demand instruments, holding that § 7-1-208 superseded any general good faith duty imposed under § 7-1-203 , and, thus, that the U.”
Savers Fed. Sav. & Loan Ass'n v. Amberley Huntsville, Ltd., 934 F.2d 1201 (11th Cir. 1991). “Under these facts, Savers’ acceleration of the loan was completely within the bounds of good faith as defined in Ala.”
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