LAC 19:VII.7227. Subrogation

A. At LEDC's request, LEDC will be subrogated to the rights of the lender in collateral, personal guarantees, and all other forms of security for the qualified loan that have not been realized upon by the lender, when the lender's loss has been fully or partially covered by payment of a loss claim, or by a combination of payment of a loss claim and recovery from the borrower, liquidation of collateral, or from other sources, and the lender has stated to LEDC that it will not take action to realize on remaining available sources of collateral or other security for recovery. B. At the time of subrogating its rights, the lender shall provide LEDC with all original security agreements, any documents evidencing title to real property, certificates of title, guarantees, and any other documents representing security for the qualified loan, duly recorded and perfected, and accompanied by enforceable assignments and conveyances to LEDC. C. If the lender chooses not to institute proceedings and/or recover from the borrower, through the liquidation of collateral or from any other source and was reimbursed by LEDC, then LEDC will have the authority to do so and retain any and all funds recovered.