Section 15.90  Default

a)         If the loan payment is not made within 15 days after the scheduled date determined under Section 15.80(b), a penalty of 10% of the payment shall be assessed.

b)         If no payment has been received within 30 days after the scheduled payment date, the loan shall be considered in default.  (Section 34b(b)(6) of the Act)

c)         As soon as a loan is considered in default, the Department shall notify the public airport Owner and attempt to enter into a renegotiation of the loan payment amounts and schedule determined under Section 15.80(b).  In no case shall the term of the loan be extended beyond the initial term determined under Section 15.70(b), and the interest rate may not be lowered or any interest be forgiven.  If a renegotiation of loan payment amounts and schedule is obtained to the Department's satisfaction within 30 days after notification of default, then the new payment schedule shall replace the one determined by Section 15.80(b) and shall be used to measure compliance with the loan for purposes of default.

d)         If, after 30 days after notification of default, the Department has not obtained a renegotiation to its satisfaction, the Department shall declare the loan balance due and payable immediately.

e)         If the Owner cannot immediately pay the balance of the loan, the Department shall proceed to foreclose. (Section 34b(b)(7) of the Act)