                                 CODE OF VIRGINIA

CONSIDERATION OF APPLICATIONS FOR PAYMENT (§ 54.1-1122)

A. The claimant shall submit the following supporting documentation with the
claim:

   1. Copies of the contract with the regulant and all written change orders to
   the contract. If no written contract between the regulant and the claimant is
   available, the claimant may submit an affidavit attesting to the terms of the
   agreement, promise, or other contractual obligation;

   2. All pleadings or other documents filed with the court from which judgment
   was obtained;

   3. All orders and opinions of the court from which judgment was obtained,
   including the final judgment order;

   4. The transcript of the debtor&#8217;s interrogatories, if conducted, or if
   no transcript is available, a sworn affidavit affirming that debtor&#8217;s
   interrogatories were conducted, or evidence that debtor&#8217;s
   interrogatories were attempted if not conducted; a description of assets of
   the judgment debtor disclosed in the debtor&#8217;s interrogatories; and a
   description of all steps taken for the sale or application of those disclosed
   assets in whole or partial satisfaction of the judgment, or a statement why no
   means are legally available for the sale or application of those disclosed
   assets, or a statement that the value of the disclosed assets is less than the
   cost of levying upon and selling such assets including reasonable estimates of
   the fair market value of the disclosed assets and costs of levying upon
   selling such assets;

   5. A statement of the balance of the judgment remaining unpaid at the time the
   claim is submitted to the Department, and a statement that the claimant agrees
   to notify the Department of any additional payment that may be received in
   whole or partial satisfaction of the judgment during the pendency of the claim
   before the Board; and

   6. Any other documentary evidence or exhibits the claimant wishes the Board to
   consider with the claim.

B. The Department shall promptly consider the verified claim of the claimant
administratively. If the claim form is incomplete or not properly notarized, or
if all required supporting documentation is not included with the claim, then
the Department may provide the claimant with notice of any deficiency and an
additional opportunity to submit a corrected verified claim. The burden shall be
on the claimant to comply with all claim requirements and to submit the
necessary documentation within 12 months of the initial claim submission. Once
the Department confirms that the verified claim is complete, it shall present
such verified claim, along with a recommendation regarding payment, to the Board
for the Board&#8217;s consideration and shall notify the claimant of the
Board&#8217;s recommendation.

C. The Department&#8217;s and Board&#8217;s consideration of the claim shall be
based solely on the contents of the verified claim. Neither an informal
fact-finding conference pursuant to &#xA7; 2.2-4019 nor a formal hearing
pursuant to &#xA7; 2.2-4020 shall be required, unless requested by the claimant.

D. A claimant shall not be denied recovery from the Fund due to the fact that
order for judgment filed with the verified claim does not contain a specific
finding of &#8220;improper or dishonest conduct.&#8221; Any language in the
order that supports the conclusion that the court found that the conduct of the
regulant meets the definition of &#8220;improper or dishonest conduct&#8221; in
&#xA7; 54.1-1118 shall be used by the Board to determine eligibility for
recovery from the Fund. To the extent the judgment order is silent as to the
court&#8217;s findings on the conduct of the regulant, the Board may determine
whether the conduct of the regulant meets the definition of improper or
dishonest conduct by substantial evidence in the verified claim.

E. If the Board finds there has been compliance with the required conditions,
the Board shall issue a directive ordering payment from the fund to the claimant
the amount remaining unpaid on the judgment, subject to the limitations set
forth in &#xA7; 54.1-1123. The claimant shall be notified in writing of the
findings of the Board. The Board&#8217;s findings shall be considered a
&#8220;case decision&#8221; and judicial review of these findings shall be in
accordance with &#xA7; 2.2-4025 of the Administrative Process Act (&#xA7;
2.2-4000 et seq.). Notwithstanding any other provision of law, the Board shall
have the right to appeal a decision of any court which is contrary to any
distribution recommended or authorized by it.

HISTORY: 1980, c. 635, § 54-145.3:4; 1984, c. 270; 1987, c. 555; 1988, c. 765;
2006, c. 723; 2013, c. 343; 2017, c. 572.