Mississippi Administrative Code › Title 11 - Mississippi Department of Environmental Quality › Part 6 - Wastewater Pollution Control Regulations › Chapter 7 - Mississippi Commission on Environmental Quality Water Pollution Control Revolving Loan Fund Program Regulations › Appendix 11-6-7-K - Loan Agreement Defaults and Remedies

Current through June 25, 2024
Each of the following events is a default of a loan
				  agreement:
(1) Failure of the Loan
				Recipient to make any loan repayment when it is due and such failure shall
				continue for a period of thirty (30) days.
(2) Failure to comply with the provisions of
				the Agreement or in the performance or observance of any of the covenants or
				actions required by the Agreement.
(3) Any warranty, representation or other
				statement by, or on behalf of, the Loan Recipient contained in the Agreement or
				in any information furnished in compliance with, or in reference to, the
				Agreement, which is false or misleading in any material respect.
(4) An order or decree entered, with the
				acquiescence of the Loan Recipient, appointing a receiver of any part of the
				Project or Revenues thereof; or if such order or decree, having been entered
				without the consent or acquiescence of the Loan Recipient, shall not be vacated
				or discharged or stayed on appeal within sixty (60) days after the entry
				thereof.
(5) Any proceeding
				instituted, with the acquiescence of the Loan Recipient, for the purpose of
				effecting a compromise between the Loan Recipient and its creditors or for the
				purpose of adjusting the claims of such creditors, pursuant to any federal or
				state statute now or hereafter enacted, if the claims of such creditors are
				payable from Revenues of the Project.
(6) Any bankruptcy, insolvency or other
				similar proceeding instituted by, or against, the Loan Recipient under federal
				or state bankruptcy or insolvency laws now or hereafter in effect and, if
				instituted against the Loan Recipient, is not dismissed within sixty (60) days
				after filing.
(7) Failure to give
				timely notice of default as required below when such failure shall continue for
				a period of thirty (30) days.
The Loan Recipient shall give the Department immediate
				  written notice of an event of default. Upon any event of default and subject to
				  the rights of bondholders with prior liens, the Department may enforce its
				  rights by utilizing one or more of the following remedies:
(1) By mandamus or other proceeding at law or
				in equity, cause to establish and collect fees and charges for use of the
				Project and to require the Loan Recipient to fulfill the Agreement.
(2) By action or suit in equity, require the
				Loan Recipient to account for all moneys received from the Department or from
				the ownership of the Project and to account for the receipt, use, application
				or disposition of the Revenues.
(3)
				By action or suit in equity, enjoin any acts or things which may be unlawful or
				in violation of the rights of the Department.
(4) By applying to a court of competent
				jurisdiction, cause to appoint a receiver to manage the Project, establish and
				collect fees and charges, and apply the Revenues to the reduction of the
				obligations under the Loan Agreement.
(5) By certifying to the Tax Commissioner
				delinquency on loan repayments, the Department may intercept the delinquent
				amount, plus ten (10) percent annual penalty interest on the amount due to the
				Department, from any unobligated funds due to the Loan Recipient under any
				revenue or tax sharing fund established by the State. Penalty interest shall
				accrue on any amount due and payable beginning on the thirtieth
				(30th ) day following the date upon which payment is
				due. The penalty interest shall be compounded monthly.
(6) By notifying financial market credit
				rating agencies.
(7) By
				administratively charging or suing for payment of amounts due, or becoming due,
				plus ten (10) percent annual penalty interest which shall accrue on any amount
				due and payable beginning on the thirtieth (30th )
				day after such notification by the Department, together with all costs of
				collection, including attorneys' fees. The penalty interest shall be compounded
				monthly.
(8) By accelerating the
				repayment schedule or increasing the interest rate.
(9) By withholding payments to the Loan
				Recipient.
(10) By terminating the
				Agreement, after providing thirty (30) days written notice of such intent to
				terminate the Agreement. Such termination will not affect the duty of the Loan
				Recipient to repay loan funds paid thus far.
No delay or omission to exercise any right or power accruing
				  upon event of default shall impair any such right or power or shall be
				  construed to be a waiver of any such default or acquiescence therein, and every
				  such right and power may be exercised as often as may be deemed expedient. No
				  waiver of any default under the Loan Agreement shall extend to or affect any
				  subsequent event of default, whether of the same or different provision of the
				  Loan Agreement, or shall impair consequent rights or remedies.