Section 900.178  Defaults

a)         If the financial intermediary is late in any payment to the Authority of any sum due under a guaranteed participating loan, the financial intermediary shall be in default.  All sums due the Authority under the guaranteed participating loan shall then be immediately due and payable, and the Authority shall have available to it all rights and remedies available in law or equity and under the guaranteed participating loan note and loan agreement.  The Authority shall suspend any further disbursements to the defaulting financial intermediary and may declare all other guaranteed participating loans to the financial intermediary immediately due and payable.

b)         Except as specifically set forth in Sections 900.170 and 900.176 of this Part, the financial intermediary's obligation to the Authority under the guaranteed participating loan is absolute and unconditional.  The failure of the eligible exporter to fulfill its obligations under any on-loan, the failure of the insurer to honor or pay any claim under the policy of comprehensive export credit insurance, or any other event will not relieve the financial intermediary of its obligations under the guaranteed participating loan.

(Source:  Amended at 11 Ill. Reg. 3100, effective February 3, 1987)