10 TAC § 200.110. Payment of Claims by the Office

(a) Subject to subsection (b) of this section, and in accordance with the Agreement, the Office shall reimburse a PFI for Losses claimed under the procedure described in §200.109 of this chapter (relating to Procedure for Making a Claim for Reimbursement for Charging Off of an Enrolled Loan).

(b) The Office may reject a claim in part or in full if:

(1) the Office, in its sole discretion, determines:

(A) the representations and warranties provided by the PFI in the Agreement were misleading or false;

(B) the representations and warranties provided by the PFI at the time of enrolling the Qualified Loan were misleading or false;

(C) the PFI did not exercise due care and diligent efforts to liquidate the loan collateral, realize the personal or other financial guarantees, or otherwise recover on the loan;

(D) the documentation provided by the PFI does not substantiate the claim;

(E) reimbursing the claim would violate state or federal law or policy; or

(F) other good cause exists; or

(2) the PFI:

(A) fails to submit required information or documentation within the time period specified by the Office in the Office's notice of deficiency sent to the PFI;

(B) seeks reimbursement of more than the Guaranteed Amount, in which case the Office shall reimburse no more than the Guaranteed Amount.

(c) If the Fund does not contain amounts sufficient to cover the total amount of a Loss claim, the Office shall pay an amount up to the available balance of the Fund. This payment shall fully satisfy the claim and the PFI has no further right to receive any other amount with respect to such claim.

(d) The Office shall review Loss claims in the order in which it receives them.