Sec.17-606a-8. Default

(a) A loan shall be delinquent when a scheduled payment is not made by the borrower or other breach of the loan agreement.

(b) Delinquent borrowers shall receive, at a minimum, 30 and 45 day past due notices from the fiduciary agent.

(c) A loan may be declared in default if payments have not been received by the fiduciary agent and the loan is not current within 60 days of notice of delinquency to the borrower.

(d) Collection efforts for loans declared in default shall be performed by the fiduciary agent or shall be assigned to the Department's Bureau of Collection. Associated expenses incurred by this process shall be included for collection from the borrower.

(e) The conditions and terms of delinquent loans may be renegotiated by the peer counselor, fiduciary agent and borrower.

(f) Any application may be denied if the applicant has a loan deliquency and/or default under this program.

(Effective July 13, 1993)