R982-502-11. Events of Default

(1) In addition to any event of default defined in the contract between lender and borrower, any violation by the borrower of any part of Section R982-502-6 shall be considered a default. (2) After a loan is in default for a period of 90 days, the lender shall, within 10 days, notify the Division of the default and recommend a course of action. (3) Upon collection of the amount guaranteed, any excess funds collected shall be applied first to principal and then to interest and be paid to the lender.