Default

(1) Notification of Event of Default. The Borrower shall provide written notice to the Agency within thirty (30) days of becoming aware of any Event of Default, as defined in this Rule 0930-04- 01-.12. (a) The written notice shall describe in reasonable detail the nature of the Event of Default and any efforts being conducted to cure the Event of Default. (b) The Loan Agreement will provide a reasonable period of time given to the Borrower to correct an Event of Default before the Loan goes into Default. (c) Failure of the Borrower to provide written notice to the Agency within thirty (30) days of becoming aware of any Event of Default shall constitute a Default, as defined in this Rule 0930-04-01-.12. (2) Nonpayment. (a) If the Borrower fails to make the monthly payments required by the repayment schedule, the Agency (or the Division, pursuant to an Inter-Agency Agreement) shall contact the Borrower within thirty (30) days of such failure. (b) If the Borrower fails to cure the payment delinquency within sixty (60) days of the receipt of such notice in (a), failure will constitute an Event of Default. (c) Upon an Event of Default for nonpayment, the State shall withhold the amount of the delinquency from any State-Shared Taxes which are otherwise apportioned to the Borrower and pay only such amount necessary to liquidate the delinquency of the Borrower to the State for deposit into the Fund. (3) Other Events of Default. (a) If an Event of Default occurs, Disbursements shall be suspended until the Event of Default is cured. The Agency shall deliver a written notice of an Event of Default to the Borrower within thirty (30) days of learning of the Event of Default. (b) The occurrence of any of the following will immediately qualify as an Event of Default by the Borrower and will require immediate resolution or payment of the Loan in full. 1. Failure to provide the Agency with the required deliverables and reporting requirements; 2. Any actions to provide the Agency with false or misleading information or representation; 3. The use of Loan Monies for ineligible expenses as defined in this Rule 0930-04- 01-.08; 4. Failure to obtain all appropriate federal, state, and local permits, clearances, and approvals; or 5. The filing of bankruptcy by the Borrower. (c) If the Borrower fails to cure the Event of Default within sixty (60) days of the receipt of the notice required by 0930-04-01-.12(3)(a), failure will constitute a Default. RESILIENT TENNESSEE REVOLVING LOAN FUND ACT CHAPTER 0930-04-01 (d) Upon a Default, the State shall withhold the remaining balance of the Loan from any State-Shared Taxes which are otherwise apportioned to the Borrower.