---
kind: "section"
citation: "12 C.F.R. § 1808.617"
title: "12"
number: "1808.617"
heading: "Events of default and remedies with respect to Bond Loans."
url: "https://uscodex.org/cfr/12/1808.617"
---

# §1808.617. Events of default and remedies with respect to Bond Loans.

- (a) **Events of default.** The following shall constitute an event of default with respect to each Bond Loan:
  - (1) Nonpayment of interest when due and payable;
  - (2) Nonpayment of principal or prepayment price when due and payable;
  - (3) Failure of the Eligible CDFI to perform any condition or covenant under any Bond Loan document;
  - (4) Any representation or warranty of the Eligible CDFI made in connection with the Guarantee Application or the Bond Loan is false or incorrect in any material respect;
  - (5) Principal or interest on any indebtedness of the Eligible CDFI or any subsidiary of the Eligible CDFI in excess of $100,000 is not paid when due (subject to a cure period);
  - (6) The holder of any junior or parity lien on collateral institutes a proceeding to enforce a lien on the collateral;
  - (7) The Eligible CDFI files bankruptcy or consents to the appointment of a receiver or trustee for itself or the collateral;
  - (8) Any money judgment is filed against the Eligible CDFI and remains unvacated for a period of 60 days from filing;
  - (9) The use of Bond Loan proceeds for any purpose other than an Eligible Purpose; or
  - (10) **Any other events of default set forth in the Bond Loan documents.**
- (b) **Remedies.** Remedies of the Qualified Issuer upon an event of default include, but are not limited to, the following:
  - (1) Declaring the entire amount of unpaid principal and interest on the applicable Bond Loan immediately due and payable;
  - (2) Applying for appointment of a receiver or trustee for the collateral;
  - (3) At the direction of the Guarantor, terminating the Bond Loan agreement, declaring the entire amount of unpaid principal and interest on the applicable Bond Loan immediately due and payable; and
  - (4) Exercising all remedies available under the applicable Bond Loan agreement, including declaring the Bond Loan Payment Default Rate in effect.
- (c) **Enforcement rights.** The Guarantor reserves all rights to enforce remedies upon an event of default.

## Notes

### Authority

Authority: The Small Business Jobs Act of 2010, Pub. L. 111-240, §§ 1134 and 1703; 12 U.S.C. 4713a.

### Source

Source: 78 FR 8310, Feb. 5, 2013, unless otherwise noted.