HAR §4-8-35. Delinquent and problem loans

The division shall review delinquent and problem accounts to determine whether or not defaults are being satisfactorily resolved, acceptable repayment arrangements are in effect, or if a satisfactory repayment arrangement can be worked out. Any workout repayment plan shall be subject to periodic review, normally every six months. If the division determines that there is no satisfactory workout of a delinquent account or remedies to other defaults, the account shall be referred to the board for appropriate action. The board may refer the delinquent account to the attorney general for appropriate action where: (1) The borrower has failed to maintain workout arrangements or otherwise remedy defaults; or (2) Legal action is required to protect the State's interest; or (3) The division's security position is threatened by the borrower or by the actions of the borrower's other creditors or vendors; or (4) There is no financial or other remedy to solve the borrower's breach or default. [Eff 1/31/85; comp 9/20/86] (Auth: HRS §155-4) (Imp: HRS §§155-4, 155-12)