1. January 1  -  Assumes the RP’s consultant has completed task phase of clean up & has prepared reimbursement application. RP will execute payment assignment form selling their claim to NatLUST concurrent with sending the claim reimbursement application to the state agency for processing & approval. Assumes application requests $100,000
2. February 1  -  Assumes on February 1 the state environmental agency approves $100,000 claim and communicates approval of decision to NatLUST by email (for this particular state, the initial advance rate is assumed to be 92%, typical for states with a one year or < payment delay). Because RP and their consultant have mutually agreed to use Direct Pay, NatLUST sends the $92,000 Initial payment check directly to the RP’s consultant.
3. August 1  -  Assumes exactly six months later the claim is reimbursed by LUST fund, which wires $100,000 to NatLUST bank account. NatLUST processes the Residual payment check. Total accrued charges are 1.25%, or $1,250.  Accordingly, NatLUST issues consultant a Residual payment check for the difference, or $6,750. ($100,000 less $92,000 Initial payment, less $1,250 accrued charges = $6,750 Residual payment.)