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Code of Federal Regulations Title 45. Public Welfare § 45.264.40 What happens if a State does not repay a Federal loan?

Current as of January 02, 2025 | Updated by Findlaw Staff

(a) If a State fails to repay the amount of principal and interest due at any point under a loan agreement developed pursuant to section 406 of the Act:

(1) The entire outstanding loan balance, plus all accumulated interest, becomes due and payable immediately;  and

(2) We will reduce the SFAG payable for the immediately succeeding fiscal year quarter by the outstanding loan amount plus interest.

(b) Neither the reasonable cause provisions at § 262.5 of this chapter nor the corrective compliance plan provisions at § 262.6 of this chapter apply when a State fails to repay a Federal loan.

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Cite this article: FindLaw.com - Code of Federal Regulations Title 45. Public Welfare § 45.264.40 What happens if a State does not repay a Federal loan? - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-45-public-welfare/cfr-sect-45-264-40/

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