StacksVerified U.S. regulatory reference

45 CFR §264.40

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
  1. (a)If a State fails to repay the amount of principal and interest due at any point under a loan agreement developed pursuant to section 406 of the Act:
    1. (1)The entire outstanding loan balance, plus all accumulated interest, becomes due and payable immediately; and
    2. (2)We will reduce the SFAG payable for the immediately succeeding fiscal year quarter by the outstanding loan amount plus interest.
  2. (b)Neither the reasonable cause provisions at § 262.5 of this chapter nor the corrective compliance plan provisions at § 262.6 of this chapter apply when a State fails to repay a Federal loan.