R51-5-8. Collections

  (1) Collection Policy. The following procedures should be followed on delinquent loans:

  (a) 30 Days Past Due: If payment has not been received within 30 days after due date, a delinquent notice reflecting the amount due including penalty shall be sent to the Borrower.

  (b) 60 Days Past Due: If payment has not been received within 60 days after due date, a second delinquent notice shall be sent out. Personal contact shall also be made by loan staff with the Borrower during this time period to try to collect the payment.

  (c) 90 Days Past Due: If payment has not been received within 90 days after due date, a third delinquent notice shall be sent out. This notice may also advise the Borrower that payment must be made or other satisfactory arrangements made with loan staff within 30 days or the account shall be assigned to the Attorney General's Office for appropriate action. Attempts to make personal contact by loan staff shall be made during this period of time to try to collect the payment or make acceptable arrangements with the Borrower.

  (d) 120 to 180 Days Past Due: Loan staff shall work with the Borrower to make satisfactory arrangements for payment of past due amounts. This may include modifying of the terms of the original contract to meet the Borrower's ability to perform on the obligation, taking additional or substitute collateral if the lender is deemed insecure, or any other appropriate actions to provide service for the Borrower and protect against loss should be done. If it appears that the Borrower shall be unable to pay the loan, refuses to communicate or cooperate with the Department or loan staff or fails to cure the delinquency, the account shall be assigned to the Attorney General's office for collection and foreclosure proceedings. These actions are at the discretion of the loan staff in consultation with the Commissioner or his/her designee and the Attorney General's Office.

  (2) Notwithstanding the above time guidelines, at any time, the loan staff, with approval from the Commissioner his/her designee, may consult with the Attorney General's Office on behalf of the Department to protect the state's interest in any pledged security or collateral on a loan or to protect its interest in any property, real or otherwise.

  (3) Notwithstanding the above time guidelines, the state or the Department may, at any time, pursue any legal or equitable remedy allowed under state or federal law to protect its interest in any pledged security or collateral on a loan or to protect its interest in any property, real or otherwise.