6-991.16. Claimant's right to appeal denial of claim; service of notice of appeal; response; failure to file response

(L19, Ch. 252, sec. 16. Eff. 7/1/20)

A. A claimant whose application is denied pursuant to section 6-991.15 may file within six months after receiving notice of a denial of the claim a verified application in the court in which judgment was entered in the claimant's favor for an order directing payment out of the mortgage recovery fund based on the grounds set forth in the claimant's application to the superintendent.

B. The claimant must serve a copy of the verified application on the superintendent and on the judgment debtor and file a certificate or affidavit of service with the court. Service on the superintendent shall be made by certified mail addressed to the superintendent. Service on a judgment debtor shall be made pursuant to section 6-991.12 and shall include the following notice:

NOTICE

An application has been filed with the court for a payment from the mortgage recovery fund that was previously denied by the superintendent of the financial institutions division of the department of insurance and financial institutions. If you wish to defend in court against this claim, you must file a written response with the court within thirty calendar days after you are served with a copy of the application. If you fail to file a written response, you waive your right to defend against the claim.

C. The superintendent and the judgment debtor each must file a written response within thirty calendar days after being served with the application under subsection B of this section. The court shall set the matter for hearing on the petition of the claimant. The court shall grant a request of the superintendent for a continuance of as much as thirty calendar days and, on a showing of good cause by any party, may continue the hearing for a time that the court considers to be appropriate.

D. At the hearing, the claimant must establish compliance with the requirements of section 6-991.11.

E. If the judgment debtor fails to file a written response to the application, the superintendent may compromise or settle the claim at any time during the court proceedings and, on joint petition of the applicant and the superintendent, the court shall issue an order directing payment out of the mortgage recovery fund.