1678-S AMH THOL GAVI 2

SHB 1678 - H AMDS 044 WITHDRAWN 3-12-97

By Representative L. Thomas

     On page 20, line 3, after Aany@ strike A((person)) borrower@ and insert Aperson@

     On page 20, line 8, after A(2)@ insert A(a)@

     On page 20, line 8, after Aany@ strike Aborrower@ and insert Aperson@

     On page 20, line 15, after Achapter.@ strike AIn@ and insert AExcept as provided in subsection (2)(b) of this section, in@

     On page 20, after line 25, insert the following:

A(b) Borrowers shall be given priority over the director and other persons in actions against the surety bond.  Borrowers shall be given a reasonable time from the violation that caused the loss, one hundred eighty days unless circumstances require otherwise, to make a claim against the bond; the director and other third parties shall then be allowed to make a claim against the remainder of the bond.@

EFFECT: Makes technical corrections and clarifications regarding giving borrowers priority over the state and third parties in accessing the surety bond.