{"url_path":"/sec/rhep/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 Defaults upon Senior Securities.","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1004724/0001193125-26-226575-index.html","accession_number":"0001193125-26-226575","cik":"0001004724","ticker":"RHEP","issuer_name":"REGIONAL HEALTH PROPERTIES, INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1004724/0001193125-26-226575-index.html","primary_entity_key":"0001004724","primary_entity_name":"REGIONAL HEALTH PROPERTIES, INC"},"word_count":315,"has_tables":true,"body_markdown":"Item 3. Defaults upon Senior Securities.\n\nEntry into Forbearance Agreements\n\nOn February 27, 2026, the Company and Erin Property Holdings, LLC (the “Borrower”) entered into two Forbearance Agreements with effective dates of February 1, 2026 (the “Forbearance Agreements”) with Cadence Bank, N.A. (the “Lender”) relating to certain defaults by the Company and the Borrower under the loan agreements in the principal amount of $5,000,000 due on July 27, 2036 (the “USDA Note”) and the principal amount of $800,000 due on July 27, 2036 (the “SBA Note” and, together with the USDA Note, the “Notes”) that were issued by the Borrower to the Company to reflect payment obligations pursuant to the Security Agreement, dated as of July 27, 2011 (the “Security Agreement”), between the Borrower and the Lender.\n\nPursuant to the Forbearance Agreements, (a) the Borrower agreed to make payments of $21,047.76 as a one-time forbearance payment and $6,764.21 for the 2026 USDA annual renewal fee toward the SBA Note no later than February 27, 2026, and (b) the Company and the Lender agreed, subject to the terms and conditions set forth in the Forbearance Agreements, to forbear from exercising its rights and remedies on account of the failure by the Company and the Borrower to pay the amounts due under the USDA Note and SBA Note by the expiration of the period (“Forbearance Period”) of February 1, 2027.\n\nDuring the Forbearance Period, the Company and the Borrower shall make monthly payments of principal and interest in accordance with the terms of the USDA Note and the SBA Note with interest continuing to accrue in accordance with the terms of the Notes which amounts shall remain the obligation of the Company and the Borrower.\n\nThe remaining balances of the USDA Note and the SBA Note will be due at the end of the Forbearance Period and include all principal, interest, late charges and statutory attorney's fees."}