Illinois Administrative Code › Title 14 - COMMERCE › Part 640 - RURAL DIVERSIFICATION ACT PROGRAM › Subpart A - RURAL DIVERSIFICATION LOAN PROGRAM › Section 640.200 - Events of Default

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
				entire unpaid principal of the loan, and the interest then accrued thereon,
				shall become and be immediately due and payable upon the written demand of the
				Department, without any other notice or demand of any kind or any presentment
				of protest, if any one of the following events (hereafter an "event of
				default") shall occur and be continuing at the time of such demand, whether
				voluntarily or involuntarily, or without limitation, occurring or brought about
				by operation of law or pursuant to or in compliance with any judgment, decree
				or order of any court or any order:
1)
				Non-Payment of Loan - If the recipient shall fail to make payment when due of
				any installment of principal on the loan, or interest accrued thereon and if
				the failure to make payment shall remain unremedied for fifteen (15) working
				days.
2) Non-Payment of Other
				Indebtedness - If default shall be made in the payment when due of any
				installment of principal or of interest on any of the recipient's other
				indebtedness (any creditor the recipient owes) and if such default shall remain
				unremedied for fifteen (15) working days.
3) Incorrect Representation or Warranty - If
				any representation or warranty contained in, or made in connection with the
				execution and delivery of, the loan agreement, or in any certificate furnished
				pursuant hereto, shall prove to have been incorrect.
4) Default in Covenants - If the recipient
				shall default in the performance of any other term, covenant or agreement
				contained in the loan agreement, and such default shall continue unremedied for
				thirty (30) working days after either:
A) it
				becomes known to an executive officer of the recipient, or
B) written notice thereof shall have been
				given to the recipient by the Department.
5) Voluntary Insolvency - If the recipient
				shall cease to pay its debts as they mature or shall voluntarily file a
				petition seeking reorganization of, or the appointment of a receiver, trustee,
				or liquidation of its assets or to effect a repayment plan with creditors, or
				shall be adjudicated bankrupt, or shall make a voluntary assignment for the
				benefit of creditors.
6)
				Involuntary Insolvency - If an involuntary petition shall be filed against the
				recipient under any bankruptcy or insolvency law or seeking the reorganization
				of or the appointment of any receiver, trustee or liquidator for the recipient,
				or the property of the recipient, or a writ or warrant of attachment shall be
				issued against the property of the recipient and such petition shall not be
				dismissed, or such writ or warrant of attachment shall not be released or
				bonded within thirty (30) working days after filing or levy.
7) Judgments - If any final judgment for the
				payment of money that is not fully covered by liability insurance shall be
				rendered against the recipient, and within thirty (30) working days, shall not
				be discharged, or an appeal therefrom taken and execution thereon effectively
				stayed pending such appeal, and, if such judgment be affirmed on such appeal,
				the same shall not be discharged within thirty (30) working days.