{"data":{"id":"us/45-cfr-264.40","jurisdiction":"us","citation":"45 CFR 264.40","heading":"What happens if a State does not repay a Federal loan?","body":"(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:\n(1) The entire outstanding loan balance, plus all accumulated interest, becomes due and payable immediately; and\n(2) We will reduce the SFAG payable for the immediately succeeding fiscal year quarter by the outstanding loan amount plus interest.\n(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.","path":["Title 45—Public Welfare","Subtitle B—Regulations Relating to Public Welfare","CHAPTER II—OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES","PART 264—OTHER ACCOUNTABILITY PROVISIONS","Subpart A—What Specific Rules Apply for Other Program Penalties?"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-45.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:21Z","sha256":"fe6e7cc2c9f4d48c1e587e9fd075ce8182536ccbb50d3d996bce19f0f76c6638","source_id":"us-cfr","stale":true,"prev":"us/45-cfr-264.31","next":"us/45-cfr-264.50"},"notice":"GroundRules: Original legal text. Not legal advice."}