La. Admin. Code tit. 7 § V-1519
Current through Register Vol. 50, No. 11, November 20, 2024
Section V-1519 - Procedure upon Default for Non-PaymentA. The commission shall send written notice within 30 days to any borrower of a direct loan after any default on any payment of principal and/or interest and shall request an explanation or reason for delinquency of payment.B. Within 60 days of default to any payment of principal and/or interest on a direct loan the commission shall enter into such compromise agreements as it deems necessary to recover the sums due and payable on the loan unless prior arrangements have been made with the borrower to fulfill his loan obligation.C. Any lender who receives a loan guarantee from the commission on a farm youth loan shall notify the borrower and the commission by letter within 30 days of any default on any payment of principal and/or interest and shall request of the borrower an explanation or reason for delinquency of payment.D. Within 60 days of default of any payment of principal and/or interest on a guaranteed loan, the lender shall notify the commission by registered letter of any compromise agreement entered into between the borrower and the lender to recover the sums due and payable on the loan or of arrangements made between the borrower and lender to fulfill his loan obligation.E. The commission may, by formal vote, offer to pay off the mortgage or the interest of the lender on any defaulted loan covered by a loan guaranty agreement and become subrogated to the interest of the lending agency if the commission determines that this action will protect the interest of the state in any property mortgaged to secure the loan guarantee.La. Admin. Code tit. 7, § V-1519
Promulgated by the Department of Agriculture, Market Commission, LR 8:271 (June 1982).AUTHORITY NOTE: Promulgated in accordance with R.S. 3:547, R.S. 3:549 and R.S. 3:543.