Delinquent Notice Process

Delinquent Notice Process. Each loan agreement shall provide for (i) monthly payments, (ii) semi-annual payments, or (iii) other periodic payments. Invoices will be sent to the entity with an active loan, based upon the payment schedule. Payments are due on the first day of the month in which payments are scheduled to be made. Failure to submit timely payments may result in the following procedures: A. 30 days delinquent- The entity will receive a formal letter from MDA stating the minimum amount due to return the loan to good standing, the collection process with the office of the State Auditor and terms of the loan agreement. B. 60 days delinquent, MDA may issue the same letter with the new minimum amount due. C. 90 days delinquent, MDA may issue the same letter with the latest minimum due. D. 120 days delinquent- The entity will receive a formal warning letter from MDA allotting 30 days to bring the loan payments up to date before the entity is turned over to the state auditor. E. 180 days delinquent- MDA may request the State Auditor to audit the receipts and expenditures of the loan (Section 57-1-303(5)). If the State Auditor finds that the entity is in arrears in payments, the entity shall be denied eligibility in all future loan financing programs with MDA until such time as the entity is again current in its loan payments.