(1) Collection
Policy. The department shall follow the following procedures on delinquent
loans:
(a) 30 Days Past Due: If the
department does not receive payment within 30 days after the due date, a
delinquent notice reflecting the amount due including penalty shall be sent to
the borrower.
(b) 60 Days Past Due:
If the department does not receive payment within 60 days after the due date, a
second delinquent notice shall be sent to the borrower. Loan staff shall also
make personal contact with the borrower during this time period to try to
collect the payment.
(c) 90 Days
Past Due: If the department does not receive payment within 90 days after the
due date, a third delinquent notice shall be sent to the borrower. This notice
may also advise the borrower that payment shall be made or other satisfactory
arrangements made with loan staff within 30 days or the account shall be
assigned to the Attorney General's Office for appropriate action. Loan staff
shall attempt to make personal contact during this period to try to collect the
payment or make acceptable arrangements with the borrower.
(d) 120 to 180 Days Past Due: Loan staff
shall work with the borrower to make satisfactory arrangements for payment of
past due amounts. This may include:
(i)
modifying of the terms of the original contract to meet the borrower's ability
to perform on the obligation ;
(ii)
taking additional or substitute collateral if the lender is deemed insecure;
or
(iii) any other appropriate
actions to provide service for the borrower and protect against loss
.
(e) If it appears that
the borrower shall be unable to pay the loan, refuses to communicate or
cooperate with the department or loan staff, or fails to cure the delinquency,
the account shall be assigned to the Attorney General's Office for collection
and foreclosure proceedings.
(f)
These actions are at the discretion of the loan staff in consultation with the
Commissioner or the Commissioner's designee and the Attorney General's
Office.
(2)
Notwithstanding the procedures set in Subsection R51-5-8(1), at any time, the
loan staff, with approval from the Commissioner or the Commissioner's designee,
may consult with the Attorney General's Office on behalf of the department to
protect the state's interest in any pledged security or collateral on a loan or
to protect its interest in any property, real or otherwise.
(3) Notwithstanding the procedures set in
Subsection R51-5-8(1), the state or the department may, at any time, pursue any
legal or equitable remedy allowed under state or federal law to protect its
interest in any pledged security or collateral on a loan or to protect its
interest in any property, real or otherwise.
