R704-3-8. Servicing the Loans, Loan Repayment and Late Penalties

(1) Loans will be serviced by the Division of Finance.

(2) Loan repayment schedules are outlined in Section 53-2a-608.

(3) The initial installment payment is due on a date established by the Division.

(4) Subsequent installment payments are due on the tenth day of each month.

(5) Loan payments may be made in advance or the remaining principal balance of the loan may be paid in full at any time without penalty.

(6) Penalties for late loan payments shall be:

(a) ten percent of the payment due;

(b) assessed and payable on payments received by the Division more than 15 days after the due date;

(c) assessed only once per scheduled payment; and

(d) noticed to the borrower with the amounts of penalty and the total payment due.

(7) Payments shall be considered received the day of the U.S. Postal Service post mark date or receipted date for payments delivered to the Division by methods other than the U.S. Postal Service.

(8) If a loan payment check is returned due to insufficient funds, a service charge in the amount allowed by law shall be added to the payment amount due.

(9) Notice of loans paid in full shall be sent after all penalties, interest, and principal have been paid.