S.D. Admin. R. 12:22:02:17

Current through Register Vol. 51, page 67, December 16, 2024

Section 12:22:02:17 - Default on loan agreement

If the borrower violates any of the terms of the loan agreement, the VAFA may place the borrower in default. Upon default, the VAFA may do one or more of the following:

(1) Declare immediately due and payable the entire principal amount then outstanding and the accrued interest;

(2) Take possession of or title to the project and its facilities; repair, maintain, operate, sell, lease, or otherwise dispose of the project and its facilities to another entity; and charge the account of the borrower for expenses for repair, maintenance, and operation of the project and other expenses necessary to cure the cause of the default;

(3) Take any other action considered appropriate by the VAFA to protect the interest of the VAFA and agency;

(4) Exercise any rights of a creditor under the South Dakota uniform commercial code or any other statute; and

(5) Enforce any remedies agreed to in the loan agreement executed between the borrower and the VAFA.

S.D. Admin. R. 12:22:02:17

28 SDR 44, effective 10/2/2001.

General Authority: SDCL 1-16E-24.

Law Implemented: SDCL 1-16E-8.