LAC 19:VII.7221 – Payment of Claims by LEDC

A. LEDC shall pay loss claims as submitted, except LEDC may reject a claim when the representations and warranties provided by the Lender at the time of enrolling the qualified loan were false.
B. Lender shall send evidence that a withdrawal of an amount equal to 66.66 percent of the loan loss has been made from the lenders loss reserve account with the payment request from LEDC.
C. LEDC shall pay loss claims in the order it receives them. If two or more loss claims are filed simultaneously by the lender and there are insufficient funds in the loss reserve account to pay them, the lender may designate the order the loss claims are paid by LEDC.

AUTHORITY NOTE: Promulgated in accordance with R.S. 51:2312 (A)(7), (B)(1) and (B)(3).

HISTORICAL NOTE: Promulgated by the Department of Economic Development, Louisiana Economic Development Corporation, LR 26:2250 (October 2000).