§ 5-28-29-30 — Claims; processing

(a) Upon receipt by the corporation of a
claim filed by the lender, the corporation shall, within ten (10) business
days, pay or authorize the lender to withdraw from the reserve fund the
amount of the claim as submitted, unless the corporation reasonably
determines that:
(1) the information provided by the lender to the corporation
under this chapter was known by the lender to be false; or
(2) the lender is not otherwise in substantial compliance with this
chapter or the agreement with the corporation.
(b) If there is insufficient money in the reserve fund to cover the
entire amount of the lender's claim, the corporation shall pay to the
lender or authorize the lender to withdraw an amount equal to the
current balance in the reserve fund, and the following apply:
(1) If the enrolled loan for which the claim has been filed is not an
early loan, the payment fully satisfies the claim, and the lender
has no right to receive any further amount from the reserve fund
with respect to that claim.
(2) If the enrolled loan for which the claim has been filed is an
early loan, the corporation, upon request of the lender, shall, out
of any future funds that are transferred into the reserve fund on
subsequently enrolled loans, pay the remaining balance of the
claim upon finding that:
(A) the partial payment has not satisfied the lender's claim; and
(B) the remaining balance of the claim is not greater than
seventy-five percent (75%) of the balance in the reserve fund at
the time the request for payment by the lender is received by the
corporation.

Legislative History

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