In the event of a default, the Certified Development Company shall call upon the letter of credit guaranteeing the principal amount of the loan plus interest due.
Failure to comply with lending criteria shall result in a penalty which the company may establish by regulation, and penalties shall not be treated as interest income for the purposes of Section 148 of the Internal Revenue Code of 1986.
Structure Mississippi Code
Title 57 - Planning, Research and Development
Chapter 71 - Mississippi Small Enterprise Development Finance Act
§ 57-71-7. Small enterprise development finance program
§ 57-71-9. Application for loan
§ 57-71-15. Authorization to hire attorneys, accountants, and others to review and close loans
§ 57-71-17. Default on loan; penalty
§ 57-71-19. Certification of nondiscrimination as condition of loan
§ 57-71-29. Temporary borrowings in anticipation of bond offering; replacement notes