A borrower may be declared in default if one or more of the following conditions exists as determined by the lender and any other reasons that may be identified in the closing documents of the loan:
- (1) the borrower does not pay a principal or interest payment within 30 days of the date due;
- (2) the borrower breaches a material obligation in the note, loan agreement, or any instrument securing the loan;
- (3) the borrower fails personally to maintain the farm or ranch land in active agricultural production for longer than one year;
- (4) the borrower leases any interest in the farm or ranch land without prior written consent of the lender and the Authority;
- (5) the borrower sells or conveys outright any minerals or mineral interest associated with the farm or ranch land without prior written consent of the lender or the authority; or
- (6) the borrower fails to provide the lender annual financial statements as required by these rules.
Source Note:The provisions of this §24.14 adopted to be effective June 16, 1995, 20 TexReg 4047; amended to be effective November 28, 1999, 24 TexReg 10319.