Payment of Claims by Department
The Department shall reimburse a Participating Financial Institution for Losses claimed as described in OAR 123-018-0090 (Procedure for Making Claim for Reimbursement of Loss). The Department may reject a claim only if the Department determines the representations and warranties provided by the Participating Financial Institution at the time of enrolling the Qualified Loan were false.
All interest earnings shall be available to pay Loss claims, except for:
Earnings available for withdrawal by the Department from the Loss Reserve Account, as described in OAR123-018-0060, and
When there are insufficient funds in the Loss Reserve Account to cover the total amount of a Loss claim, the Department shall pay an amount equal to the balance of the Loss Reserve Account, less the Department’s share of any accumulated interest earnings on the account. This payment will fully satisfy the claim and the Participating Financial Institution will have no further right to receive any other amount with respect to such claim.
The Department shall reimburse Loss claims in the order it receives them. If a Participating Financial Institution files two or more Loss claims simultaneously and there are insufficient funds in the Loss Reserve Account to pay them, the Participating Financial Institution may designate the order the Loss claims are to be paid by the Department.