Code of Federal Regulations Title 24. Housing and Urban Development § 24.891.730 Default by Borrower

(1) That if HUD determines that the Borrower is in default under the PAC, HUD will notify the Borrower of the actions required to be taken to cure the default and of the remedies to be applied by HUD, including an action for specific performance under the PAC, reduction or suspension of project assistance payment and recovery of overpayments, as appropriate;  and

(2) That if the Borrower fails to cure the default, HUD has the right to terminate the PAC or to take other corrective action.