[Code of Federal Regulations]
[Title 45, Volume 4]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR1336.68]

[Page 290]
 
                        TITLE 45--PUBLIC WELFARE
 
CHAPTER XIII--OFFICE OF HUMAN DEVELOPMENT SERVICES, DEPARTMENT OF HEALTH 
                           AND HUMAN SERVICES
 
PART 1336--NATIVE AMERICAN PROGRAMS--Table of Contents
 
  Subpart F--Native Hawaiian Revolving Loan Fund Demonstration Project
 
Sec. 1336.68  Defaults, uncollectible loans, liquidations: Responsibilities of the Loan Administrator.

    (a) Prior to making loans from the RLF, the Loan Administrator will 
develop and obtain the Commissioner's approval for written procedures 
and definitions pertaining to defaults and collections of payments. 
(section 803A(b)(4))
    (b) The Loan Administrator will provide a copy of such procedures 
and definitions to each applicant for a loan at the time the application 
is made. (section 803A(b)(4))
    (c) The Loan Administrator will report to the Commissioner whenever 
a loan recipient is 90 days in arrears in the repayment of principal or 
interest or has failed to comply with the terms of the loan agreement. 
After making reasonable efforts to collect amounts payable, as specified 
in the written procedures, the Loan Administrator shall notify the 
Commissioner whenever a loan is uncollectible at reasonable cost. The 
notice shall include recommendations for future action to be taken by 
the Loan Administrator. (section 803A(c) (1) and (2))
    (d) Upon receiving such notices, the Commissioner will, as 
appropriate, instruct the Loan Administrator:
    (1) To demand the immediate and full repayment of the loan;
    (2) To continue with its collection activities;
    (3) To cancel, adjust, compromise, or reduce the amount of such 
loan;
    (4) To modify any term or condition of such loan, including any term 
or condition relating to the rate of interest or the time of payment of 
any installment of principal or interest, or portion thereof, that is 
payable under such loan;
    (5) To discontinue any further advance of funds contemplated by the 
loan agreement;
    (6) To take possession of any or all collateral given as security 
and in the case of individuals, corporations, partnerships or 
cooperative associations, the property purchased with the borrowed 
funds;
    (7) To prosecute legal action against the borrower or against the 
officers of the borrowing organization;
    (8) To prevent further disbursement of credit funds under the 
control of the borrower;
    (9) To assign or sell at a public or private sale, or otherwise 
dispose of for cash or credit any evidence of debt, contract, claim, 
personal or real property or security assigned to or held by the Loan 
Administrator; or
    (10) To liquidate or arrange for the operation of economic 
enterprises financed with the revolving loan until the indebtedness is 
paid or until the Loan Administrator has received acceptable assurance 
of its repayment and compliance with the terms of the loan agreement. 
(Section 803A(c)(2)(B))