Section 140.23. Payments on allowed claims.

 

(1)  The amount paid on each allowed claim shall be determined by the priority class of the claim. All claims in the same priority class shall be treated alike, beginning with the claims of the first priority class, as follows:

(a) The total amount necessary to pay all claims of the class in full shall be determined.

(b) If enough funds are available under the bond or letter of credit to do so, all claims of the class shall be paid in full.

(c) If, after all allowed claims of a class have been paid in full, funds remain available to pay additional claims, the allowed claims of the next priority class shall be paid, in accordance with pars. (a) to (d) .

(d) If insufficient funds are available to pay all claims in a class, then each claim of the class shall be prorated according to the following formula - See PDF for diagram :

(2)  When a class of claims has been prorated because there are insufficient funds available to pay the claims of the class in full, no payments shall be made upon allowed claims of the successive priority classes.

(3)  The aggregate total of all payments on all claims may not exceed the total amount of the bond or letter of credit available for payment of claims.

History: Emerg. cr. eff. 10-16-85; cr. Register, July, 1986, No. 367 , eff. 8-1-86; am. (1) (a) to (c) and (3), Register, February, 1996, No. 482 , eff. 3-1-96.