S.D. Admin. R. 68:01:02:19

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

Section 68:01:02:19 - Default on loan agreement

If the borrower violates any of the terms of the loan agreement, the authority may place the borrower in default. Upon default, the authority 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 the facility; repair, maintain, operate, sell, lease, or otherwise dispose of the facility 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 authority to protect the interest of the authority and USDA RD;

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

(5) Take any action allowed by, enforce any responsibility imposed upon the borrower by, or enforce any remedies agreed to in the loan agreement executed between the borrower and the authority.

S.D. Admin. R. 68:01:02:19

16 SDR 158, effective 3/25/1990; 27 SDR 66, effective 1/4/2001.

General Authority: SDCL 1-16B-14(4).

Law Implemented: SDCL 1-16B-44, 1-16B-46.