| (a) If a PFI charges off all or part of an Enrolled
Loan because of a default by the Borrower, the PFI may claim reimbursement
for all or part of the Loss incurred by requesting reimbursement for
the charged off loan through the Program Website and providing all
information and documentation required by the Office. The Office may
notify the PFI of any deficiencies in the PFI's claim for reimbursement.
(b) The PFI must make the claim:
(1) only after exercising due care and diligent efforts
to liquidate the loan collateral, realize the personal or other financial
guarantees, or otherwise recover on the loan;
(2) on or before the 180th day after charging off the
loan; and
(3) not before the first anniversary of the PFI's enrollment
of the loan in the Program.
(c) Subject to subsection (b)(1) of this section, a
PFI may make a claim for reimbursement of a Loss prior to the liquidation
of collateral, realization on personal or other financial guarantees,
or otherwise recovering on the loan.
(d) Notwithstanding subsection (b)(2) of this section,
the Office may authorize the PFI to submit a claim after the 180th
day after charging off the Enrolled Loan if, in the Office's sole
discretion:
(1) the PFI demonstrates it has consistently and actively
undertaken activities to recover on the Enrolled Loan; or
(2) shows other good cause.
(e) The PFI shall retain documentation in its files
substantiating all claims for a term commensurate with standard banking
records retention practices but not less than seven years after the
date that the Enrolled Loan is terminated.
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