(a) In the event that the claimant has not completed diligent collection efforts prior to submission of the application to the Secretary of State, claimant still may submit an application within 18 months of the judgment becoming final but shall include a verified statement that diligent collection efforts have not been completed and request that the Secretary of State delay a decision on the application pending the completion of collection efforts. The Secretary of State may agree to delay making a decision on such application for a period of time, not to exceed one year, until claimant submits a verified statement that diligent collection efforts have been completed, or the period of time expires, whichever is earlier. The Secretary of State's time to act upon such application pursuant to California Corporations Code sections 2283 and 2284 does not commence until the Secretary of State's receipt of claimant's verified statement that diligent collection efforts have been completed, or the period of time expires. As used in this section, diligent collection efforts includes ongoing litigation against additional defendants responsible for claimant's loss and proceedings in bankruptcy court. Failure to complete diligent collection efforts may be the sole basis for the denial of an application.

(b) For purposes of Corporations Code section 2283(b), an irreconcilable dispute between claimant and the Secretary of State may arise if, after receipt of the second itemized list of deficiencies or request for additional documents and information, claimant provides notice to the Secretary of State in writing that claimant believes that the application is complete and the Secretary of State does not deem the application complete within 21 days from the receipt of claimant's notice.