Loan default

The political subdivision must agree that upon default in the payments of principal and accrued interest on the loan or in the performance of any covenant or condition of the loan agreement, the department, through its financial agent, may at its option, do one or more of the following: 1. Declare immediately due and payable the entire principal amount then outstanding and the accrued interest; 2. Incur and pay reasonable expenses, through the account of the political subdivision, for repair, maintenance, and operation of the facility, and other expenses necessary to cure the cause of default; or 3. Proceed to enforce payment of such interest or principle or other amount then due and payable pursuant to applicable provisions of law or loan agreement.