Mississippi Administrative Code
Title 25 - Military and Veterans - Veterans' Home Purchase Board
Part 202 - Loan Policies
Chapter 13 - Policy for Handling Loss Draft Funds
Rule 25-202-13.1 - Timeliness is essential in order for a customer's account to show the correct balance
The Loss Draft account is used for insurance proceeds to repair a customer's home. The insurance check will be made payable to both the homeowner and the Veterans' Home Purchase Board. The homeowner will need to endorse the check and send to the VHPB. Once we receive the check, a manager will make a decision on how these funds are to be handled. Usually the funds will be deposited into our Loss Draft Bank Account and increments disbursed to the homeowner as the work is being completed. Inspections are done by VHPB staff to ensure the house is being repaired properly unless the homeowner's equity and payment history make it more practical to return the entire proceeds to the property owner.
Miss. Code Ann. § 35-7-7