[Code of Federal Regulations]
[Title 49, Volume 4]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR260.47]

[Page 878-879]
 
                        TITLE 49--TRANSPORTATION
 
       CHAPTER II--FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF 
                             TRANSPORTATION
 
PART 260_REGULATIONS GOVERNING LOANS AND LOAN GUARANTEES UNDER THE RAILROAD 
 
       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

[[Page 879]]

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.