29A-3-806. Allowance of claims. (a) As to claims presented to the personal representative or filed with the clerk of court within the time limit prescribed in § 29A-3-803, the personal representative may mail a notice to any claimant stating that the claim has been allowed or disallowed. Every claim which is disallowed in whole or in part by the personal representative is barred so far as not allowed unless the claimant files a petition for allowance in the court or commences a proceeding against the personal representative not later than sixty days after the mailing of the notice of disallowance or partial allowance if the notice warns the claimant of the impending bar. Failure of the personal representative to mail notice to a claimant of action on a claim for sixty days after the time for original presentation of the claim has expired has the effect of a notice of allowance.

(b) The personal representative may at any time prior to payment change the allowance to a disallowance in whole or in part, but not after allowance by court order or judgment or an order directing payment of the claim. The personal representative shall notify the claimant of the change to disallowance, and the disallowed claim is then subject to bar as provided in subsection (a). The personal representative may change a disallowance to an allowance, in whole or in part, until the claim is barred under subsection (a); after it is barred, it may be allowed and paid only if the estate is solvent and all successors whose interests would be affected consent.

(c) Upon the petition of the personal representative or of a claimant, the court may allow in whole or in part any claim or claims presented to the personal representative or filed with the clerk of court in due time and not barred by subsection (a) of this section. Notice of the proceeding shall be given to the claimant, the personal representative, and to such other interested persons as the court may direct.

(d) A judgment in a proceeding in any court against a personal representative to enforce a claim against a decedent's estate is an allowance of the claim.

(e) Unless otherwise provided in a judgment entered against the personal representative in any court, interest is payable on all allowed claims at the category B rate of interest specified in § 54-3-16 commencing sixty days after the time for original presentation of the claim has expired unless the claim is based on a contract providing for payment of interest, in which case the contract provisions shall control.

Source: SL 1994, ch 232, § 3-806; SL 1995, ch 167, § 127.