The Board shall be obligated to purchase no more than ninety percent (90%) of the outstanding principal balance and the accrued unpaid interest. In the event the lender requests the note be purchased, the Board shall pay the percentage of accrued interest guaranteed for the number of days the debtor has been delinquent, up to the day the Board notified the lender of its intent to purchase the note. Payment, however, shall be conditional upon the lender having met the conditions of the guarantee as stipulated in section 18413.

In the event that the lender has recovered part of the collateral or security interest prior to reimbursement by the Board, only the difference between the recovered money and the guaranteed portion of the principal and the interest may be claimed against the loan guarantee fund by the lender. If the lender or the Board obtains recovery on a defaulted note after purchase and reimbursement by the Board, the recovery shall be paid to the Board and the lender in proportion to the exposure the Board and the lender respectively bore to the defaulted note after the deduction of its collection costs.

No single claim shall, nor shall the aggregate of claims made by lenders, hereunder, exceed the amount allocated to the loan guarantee fund in the Account. The State shall not be liable or obligated in any way beyond the State money allocated to the loan guarantee fund in the Account.