1. (1) Collection Policy. The department shall follow the following procedures on delinquent loans:

   1. (a) 30 Days Past Due: If the department does not receive payment within 30 days after the due date, the department shall send a delinquent notice reflecting the amount due, including a penalty to the borrower.
   2. (b) 60 Days Past Due: If the department does not receive payment within 60 days after the due date, the department shall send a second delinquent notice to the borrower. The department shall also make or attempt to make personal contact with the borrower during this time period to try to collect the payment.
   3. (c) 90 Days Past Due: If the department does not receive payment within 90 days after the due date, the department shall send a third delinquent notice to the borrower. This notice may also advise the borrower that payment shall be made, or other satisfactory arrangements made with the department within 30 days, or the account shall be assigned to the Attorney General's Office for appropriate action. The department shall attempt to make personal contact during this period to try to collect the payment or make acceptable arrangements with the borrower.

   4. (d) 120 to 180 Days Past Due: The department shall work with the borrower to make satisfactory arrangements for payment of past due amounts. This may include:

      1. (i) modifying the terms of the original contract to meet the borrower's ability to perform on the obligation;
      2. (ii) taking additional or substitute collateral if the lender is deemed insecure; or
      3. (iii) any other appropriate actions to provide service for the borrower and protect against loss.
   5. (e) If it appears that the borrower shall be unable to pay the loan, refuses to communicate or cooperate with the department, or fails to cure the delinquency, the account shall be assigned to the Attorney General's Office for collection and foreclosure proceedings.
   6. (f) These actions are at the discretion of the department in consultation with the Commissioner or the Commissioner's designee, and the Attorney General's Office.
2. (2) Notwithstanding the procedures set in Subsection R51-5-8(1), at any time, the department, 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. (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.

KEY: Rural Rehabilitation Loans, loans, grants, program operations, agriculture funding

Date of Last Change: February 11, 2026

Notice of Continuation: March 7, 2023

Authorizing, and Implemented or Interpreted Law: 4-19-103; 4-2-103(i); 4-19-102