[Code of Federal Regulations]

[Title 49, Volume 4]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR260.47]



[Page 820]

 

                        TITLE 49--TRANSPORTATION

 

       CHAPTER II--FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF 

                             TRANSPORTATION

 

PART 260_REGULATIONS GOVERNING LOANS AND LOAN GUARANTEES UNDER THE 

RAILROAD REHABILITATION AND IMPROVEMENT FINANCING PROGRAM--Table 

of Contents

 

       Subpart E_Procedures To Be Followed in the Event of Default

 

Sec. 260.47  Events of default for direct loans.



    (a) Upon the Borrower's failure to make a scheduled payment, or upon 

the Borrower's violation of any covenant or condition of the loan 

documents which constitutes a default under the provisions of the loan 

documents, the Administrator, at the Administrator's discretion may:

    (1) Exercise any and all remedies available under the provisions of 

the loan agreement and other loan documents, including any guarantees, 

or inherent in law or equity;

    (2) Terminate further borrowing of funds;

    (3) Take possession of assets pledged as collateral; and

    (4) Liquidate pledged collateral.

    (b) The Administrator shall have the right to charge Borrower 

interest, penalties and administrative costs, including all of the 

United States' legally assessed or reasonably incurred expenses of its 

counsel and court costs in connection with any proceeding brought or 

threatened to enforce payment or performance under applicable loan 

documents, in accordance with OMB Circular A-129, as it may be revised 

from time to time.