Current through Register Vol. XLI, No. 50, December 13, 2024
Section 193-1-8 - Default8.1. A loan is in default when any payment is 30 days past due or upon the occurrence of any event of default as defined in the loan documents. When a loan is in default, the Board shall notify the borrower that the borrower has 30 days in which to cure the default. If the borrower fails to cure the default within 30 days, the Board shall take all appropriate action provided under law and the loan documents. In determining the appropriate action, the Board shall consider:8.1.a. The impact of enforcement and collection on the borrower; and8.1.b. The likelihood that the loan will be repaid if a waiver or extension is granted.8.2. If the Board determines that the loan should be enforced and collected, it shall give final notice of the default or defaults and acceleration of the loan and an additional grace period of 30 days in which to pay the amount outstanding, and the Board shall give the borrower notification that if he or she fails to make payment in full, the Board will proceed to enforce its rights under the loan documents. In the event that a borrower defaults on a loan, the Board may repossess the assistive device financed. The Board may utilize or otherwise dispose of any repossessed assistive devices.8.3. The Board may apply payments or other monies received on loans which are in default first to expenses of collection and preservation of collateral, second to accrued interest, and third to outstanding principal.