The studio, which elected to attempt to pay the loan rather than its 379 employees, has subsequently made its temps and contract employees redundant.
The $75 million loan, backed by Rhode Island taxpayers, was granted in 2010, but the governor of Rhode Island expressed concern over 38 Studios' future earlier this week.
Local news network WPRI reports that the cheque was hand delivered to the developer's debtors, the RI Economic Development Corporation, but that 38 Studios chief financial officer Rick Wester subsequently called the agency to say that there wasn't enough money to cover the payment.
If the company defaults on the loan, state taxpayers could have to pay $112 million over the next eight years, while the rights for Kingdoms Of Amalur would be transferred to Rhode Island.
The EDC's executive director, the primary advocate for the loan, has resigned.