12 CFR § 1808.618 - Events of default and remedies with respect to Secondary Loans.
---
identifier: "/us/cfr/t12/s1808.618"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 1808.618 - Events of default and remedies with respect to Secondary Loans."
title_number: 12
title_name: "Banks and Banking"
section_number: "1808.618"
section_name: "Events of default and remedies with respect to Secondary Loans."
chapter_name: "COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND, DEPARTMENT OF THE TREASURY"
part_number: "1808"
part_name: "COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS BOND GUARANTEE PROGRAM"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "The Small Business Jobs Act of 2010, Pub. L. 111-240, §§ 1134 and 1703; 12 U.S.C. 4713a."
regulatory_source: "78 FR 8310, Feb. 5, 2013, unless otherwise noted."
cfr_part: "1808"
---
# 1808.618 Events of default and remedies with respect to Secondary Loans.
(a) *Events of default.* The following shall constitute an event of default with respect to each Secondary Loan:
(1) Nonpayment of interest when due and payable;
(2) Nonpayment of principal when due and payable;
(3) Failure of the Secondary Borrower to perform any condition or covenant under any Secondary Loan document;
(4) Any representation or warranty of the Secondary Borrower made in connection with the Secondary Loan application or the Secondary Loan documents is false or incorrect in any material respect;
(5) Principal or interest on any indebtedness of the Secondary Borrower or any subsidiary of the Secondary Borrower in excess of $100,000 is not paid when due (subject to a cure period);
(6) The holder of any junior or parity lien on collateral institutes a proceeding to enforce a lien on the collateral;
(7) The Secondary Borrower files bankruptcy or consents to the appointment of a receiver or trustee for itself or the collateral;
(8) Any money judgment is filed against the Secondary Borrower and remains unvacated for a period of 60 days from filing; or
(9) Any other events of default set forth in the Secondary Loan documents.
(b) *Remedies.* The Qualified Issuer and the Guarantor will reserve certain rights to enforce (or direct enforcement of) remedies upon an event of default under the Secondary Loan documents.