Sec. 05.13.04.24. Termination of Obligation to Lender

The Department may terminate the obligation to a lender to enroll loans under the Program if the Department determines that the lender is not in substantial compliance with the requirements of the Program or the requirements of this chapter. The termination takes effect on the date specified in the notice of termination, except that the termination does not apply to a loan made on or before the date on which the notice of termination is received by the lender. If the Department is terminating the enrollment of loans for all participating lenders under the Program, the Department shall provide at least 90 days notice to the lender. A termination under this regulation is prospective only and does not apply to a loan previously refinanced. After termination, the amount covered under the Program may not be increased beyond the covered amount as previously enrolled.