§ 5-28-29-29 — Claims; filing

(a) If the lender charges off all or part of an
enrolled loan, the lender may file a claim with the corporation. The
claim must be filed contemporaneously with the charge-off.
(b) The lender's claim may include, in addition to the amount of
principal charged off plus accrued interest, one-half (1/2) of the
reasonable documented out-of-pocket expenses incurred in pursuing
collection efforts, including preservation of collateral. The amount of
principal included in the claim may not exceed the principal amount
covered under the program. The amount of accrued interest included
in the claim may not exceed the accrued interest attributable to the
covered principal amount.
(c) The lender shall determine when and how much to charge off on
an enrolled loan in a manner consistent with the lender's normal
method for making these determinations on similar loans that are not
enrolled loans.
(d) If the lender files two (2) or more claims contemporaneously and
there are insufficient funds in the reserve fund at that time to cover the
entire amount of the claims, the lender may designate the order of
priority in which the corporation shall pay the claims.

Legislative History

As added by P.L.162-2007, SEC.24.