|(a) Suit. When any CAL or HELP borrower or cosigner
fails or refuses to make as many as five monthly payments due in accordance
with an executed note, the full amount of remaining principal, accrued
interest and other charges shall become due and payable immediately.
When as many as six payments have been missed, the loan will be considered
to be in default, and the Office of the Attorney General, at the request
of the Commissioner, may file suit for the outstanding balance.
(b) When a borrower defaults on a FSL or FSLS account,
the Board may file a default claim with the appropriate guarantor.
When a borrower defaults on a HEAL account, the Board may file suit
in order to perfect a default claim with the United States Secretary
of Health and Human Services. Repayment amounts and prerogatives may
be radically different after an account has been assigned to a guarantor.
|Source Note: The provisions of this §22.55 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective May 21, 2008, 33 TexReg 3939; transferred effective June 1, 2017, as published in the Texas Register May 19, 2017, 42 TexReg 2739; amended to be effective December 5, 2019, 44 TexReg 7381