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REPRESENTATIONS AND OBLIGATIONS OF CLAIMANT AGENCY <br /> <br />CLAIMANT AGENCY hereby designates, appoints, and authorizes <br />CLEARINGHOUSE to process delinquent debts to be submitted to Department. <br />"DELINQUENT DEBT" is'defined to mean a sum that is at least $50 owed to a <br />claimant agency that has accrued through contract, subrogation, tort, operation of law, <br />or any other legal theory regardless of whether there is an outstanding judgment' for <br />the sum. To become a delinquent debt a period of~ 60 days must have elapsed. <br />between the time CLAIMANT AGENCY declares the debt delinquent and the date <br />the delinquent debt is submitted to CI.I=.ARINGHOUSE for collection. <br /> <br />CLAIMANT AGENCY shall comply with the provisions of the ACT prior to the <br />submission of a debt to CI.F. ARINGHOUSE for setoff and shall provide <br />CLF. ARINGHOUSE the date of compliance with its debt submission file. <br /> <br />CLAIMANT AGENCY shall, upon execution of this agreement file a "participation <br />form" with CLEARINGHOUSE designating a debt setoff coordinator and a debt <br />setoff contact. The debt setoff coordinator shall be the designated local government <br />employee authorized to receive notices and communication from <br />CLEARINGHOUSE to insure that the requirements of this agreement and the <br />'requirements of the Act are met. The debt setoff coordinator shall supply <br />CLEARINGHOUSE with any and all information that in the opinion of <br />CLEARINGHOUSE is necessary for the proper implementation of this agreement. <br />The debt setoff contact will receive all referrals from debtors. <br /> <br /> CLAIMANT AGENCY shall use an ASCII file specified by CLEARINGHOUSE to <br /> prepare "debt files" and adjustments to debt files that CLAIMANT AGENCY <br /> certifies to CLEARINGHOUSE are owed to CLAIMANT AGENCY and that <br /> CLAIMANT AGENCY desires to have CLEARINGHOUSE submit to <br /> DEPARTMENT for setoff as shown on the attached "File' Layouts for Submission of <br /> Debts from CLAIMANT AGENCY to CI.EARINGHOUSE." If, in the opinion of <br /> CLEARINGHOUSE, changes to the file format are necessary to carry out this <br /> program, CLEARINGHOUSE shall timely notify the CLAIMANT AGENCY. The <br /> CLAIMANT AGENCY covenants and agrees that it shall immediately implement <br />-any changes required by CLEARINGHOUSE. Data file structure will mirror <br /> requirements of DEPARTNIENT but may include other fields such as date of debt <br /> cancellation. CLEARINGHOUSE will organize capability of date and time stamping <br /> debt for priority setting. <br /> <br />CLAIMANT AGENCY shall transmit a debt file to CLEARINGHOUSE in a method <br />and format acceptable to CLEARINGHOUSE. CLAIMANT AGENCY may choose <br />one of three methods for data transmission: (1) customized software application <br />provided by CLEARINGHOUSE; (2) file transfer protocol; and (3) hardcopy <br />documents (hardcopy will require payment of COSTS of data entry services). <br /> <br />F. CLAIMANT AGENCY shall comply with the notice and hearing procedures set forth <br /> in G.S. 105A-5 prior to the submission of a debt file to CLEARINGHOUSE. Debt <br /> <br />-~'~ Addendum A - 2 <br /> <br />I <br />I <br />I <br />I <br /> <br /> <br />