(a)

1. (1) As required by state and federal law, payments are disbursed directly to custodial parties within two (2) business days of receipt and identification.
2. (2) In an intergovernmental responding case, payments are disbursed to the initiating child support program within two (2) business days.
3. (3) Payment may not be made to private collection agencies or similar third parties.

(b) Distribution and disbursement may be delayed only if:

1. (1) The court has ordered payments held pending the outcome of:

   1. (A) A judicial review or during the pendency of an appeal; or
   2. (B) Other litigation regarding the existence or amount of arrears owed or on specific order of the court; or

2. (2)

   1. (A) There is an error that has occurred and the worker is correcting the problem.
   2. (B) The worker must monitor the case daily to ensure that any money that should be disbursed to the custodial party is released promptly in order to meet the two-business-day timeframe required by the regulation and then remove the distribution hold as soon as the problem is corrected.