[Code of Federal Regulations]

[Title 45 Volume 4]

[Revised as of October 1, 2006]

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

[CITE: 45CFR1336.68]



[Page 240]

 

                        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))