What is an 'acceleration event' (loss of the benefit of term) in a mezzanine contract?

Loss of the benefit of term means that when a ground set out in the contract occurs, the issuer loses the benefit of being able to defer repayment until maturity, and the investor becomes able to demand immediate repayment of principal and interest.

KOFIA guidelines require the contracts for mezzanine securities in which funds invest to include provisions on acceleration, and require information related to acceleration, such as trading suspensions, audit opinions and designation as an administrative issue, to be reflected in valuations in a timely manner. The specific grounds and procedures differ from contract to contract, so it is important to check the contract terms before investing.