Sec. 29. (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.

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Terms Used In Indiana Code 5-28-29-29

  • claim: means a claim filed by the lender under section 29 of this chapter. See Indiana Code 5-28-29-5
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • enrolled loan: means a loan enrolled by the corporation under the terms of section 19 of this chapter. See Indiana Code 5-28-29-8
  • lender: means :

    Indiana Code 5-28-29-9

  • program: refers to the capital access program created by this chapter. See Indiana Code 5-28-29-11
  • reserve fund: means an account established by the corporation with funds accumulated under this chapter and to cover claims made by the lender under this chapter. See Indiana Code 5-28-29-12
     (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.

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

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