12:03:03:07Default.

A loan from the revolving fund is in default if the district fails to make an annual payment within 90 days after the due date, unless the commission has approved a request for a loan extension or modification pursuant to § 12:03:03:11. Upon default in the payments of principal and accrued interest on the loan or in the breach of any covenant or condition, the commission may: (1) Declare immediately due and payable: (a) The outstanding principal amount; (b) The accrued interest; and (c) All costs associated with the collection of the outstanding balance. (2) For the account of the borrower, incur and pay reasonable expenses for repair or maintenance of the equipment and other expenses necessary to cure the default; or (3) Take possession of the equipment and sell, lease, or otherwise dispose of the equipment entity.

Source: 11 SDR 59, effective October 29, 1984; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 21 SDR 90, effective November 14, 1994; 49 SDR 48, effective November 23, 2022.