Sec. 31. If, after payment of a claim by the corporation, the lender recovers from a borrower any amount for which payment of the claim was made, the following apply:

(1) If the recovered amount, when added to the claim previously paid by the corporation in connection with an enrolled loan, exceeds the lender’s loss on that enrolled loan, the lender shall promptly pay to the corporation for deposit in the reserve fund the amount of the excess.

lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Indiana Code 5-28-29-31

  • borrower: means the recipient of a loan that is, has been, or will be filed by the lender for enrollment under the program and meets the following requirements:

    Indiana Code 5-28-29-3

  • 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

  • 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
(2) For purposes of this section and section 32 of this chapter, the lender’s loss on an enrolled loan shall be the amount of principal charged off by the lender plus accrued interest plus one-half (1/2) of the reasonable and documented out-of-pocket expenses incurred by the lender in pursuing collection efforts.

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

  Previous section
Next section  
 Chapter 29 Contents