Section 886.300  Agency Action for Noncompliance with Loan Agreements and Procedures

a)         If the loan recipient fails to make timely payments or otherwise fails to meet its obligations as provided in this Part, the Agency is authorized to pursue the collection of the amounts past due, the outstanding loan balance, and the costs thereby incurred, either pursuant to the Illinois State Collection Act of 1986 or by taking any other means provided by law, including the taking of title, by foreclosure or otherwise, to any project or other property pledged, mortgaged, encumbered, or otherwise available as security or collateral. (Section 58.15(b)(6) of the Act)

b)         In addition to such other remedies as may be provided by law, if the loan recipient fails to comply with any term or condition of the loan agreement or this Part, the Agency may:

1)         Revoke the loan and recover all loan funds disbursed;

2)         Terminate the loan in accordance with Section 886.305 of this Part;

3)         Issue a stop-work order or suspend all project work in accordance with Section 886.315 of this Part; or

4)         Take such other action as the Agency is authorized by law.

c)         No action shall be taken under this Section without prior oral or written consultation with the loan recipient.

d)         In determining whether to take action and which action to take under this Section, the Agency shall consider factors, including, but not limited to:

1)         The severity of the violations;

2)         The number of violations by the loan recipient;

3)         Whether the violation is a continuing one;

4)         Whether the loan recipient can remedy the violation; and

5)         Whether the loan recipient and any contractor or subcontractor remain capable of complying with the approved work project.