Once the compromise amount has been approved, the LCSA shall prepare the Agreement. The Agreement shall include updated arrears balances for each case to be compromised. At the signing of the agreement, the NCP must pay the initial or lump sum arrears repayment amount.1 The LCSA shall prepare a separate agreement for each case, which specifies the repayment and compromise amounts for that case. After receiving payment, the LCSA shall reduce arrears balances and the unreimbursed assistance pool (UAP) balance by the amount paid and the amount compromised. If the payment is made by personal check, the LCSA shall wait until the check has cleared before reducing the UAP.
If the case is a Uniform Interstate Family Support Act (UIFSA) case, the LCSA shall also notify the responding state of the arrears reduction.
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1 The payment may include custodial party arrears that must be repaid before the permanently assigned arrears can be paid.