A recipient may be declared in default if one or more of the
following conditions exists as determined by the Authority and/or
lender, whichever is applicable, and any other reasons that may be
identified in the closing documents of the loan:
(1) The recipient does not pay a scheduled principal
or interest payment;
(2) The recipient fails to comply with any condition,
covenant, obligation, provision, requirement, or term of the note,
loan agreement, or instrument securing the loan;
(3) The recipient fails personally to complete the
project as described in the application;
(4) The recipient fails to provide the lender with
financial statements and any other documents as required by these
rules; or
(5) The recipient fails to meet the project goals defined
in the application.
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