---
kind: "section"
citation: "12 C.F.R. § 1808.618"
title: "12"
number: "1808.618"
heading: "Events of default and remedies with respect to Secondary Loans."
url: "https://uscodex.org/cfr/12/1808.618"
---

# §1808.618. Events of default and remedies with respect to Secondary Loans.

- (a) **Events of default.** The following shall constitute an event of default with respect to each Secondary Loan:
  - (1) Nonpayment of interest when due and payable;
  - (2) Nonpayment of principal when due and payable;
  - (3) Failure of the Secondary Borrower to perform any condition or covenant under any Secondary Loan document;
  - (4) Any representation or warranty of the Secondary Borrower made in connection with the Secondary Loan application or the Secondary Loan documents is false or incorrect in any material respect;
  - (5) Principal or interest on any indebtedness of the Secondary Borrower or any subsidiary of the Secondary Borrower 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 Secondary Borrower 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 Secondary Borrower and remains unvacated for a period of 60 days from filing; or
  - (9) **Any other events of default set forth in the Secondary Loan documents.**
- (b) **Remedies.** The Qualified Issuer and the Guarantor will reserve certain rights to enforce (or direct enforcement of) remedies upon an event of default under the Secondary Loan documents.

## 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.