§ 420-i. Payment of insurance. 1. Each savings and loan association
whose application for insurance under this article is approved by the
fund shall be entitled to insurance up to the full withdrawal value of
the accounts of each of its members and investors or in such amount as
shall be established by the board of trustees, but in no event shall the
maximum amount of insurance for any savings account be less than fifteen
thousand dollars.

2. In the event of a default by any insured savings and loan
association, payment of each insured account in such insured association
shall be made by the fund as soon as possible either (1) by cash or (2)
by making available to each savings account a transferred savings
account in a new insured savings and loan association in the same
community or in another insured savings and loan association in an
amount equal to the insured savings account; provided however, that the
fund, in its discretion, may require proof of claims to be filed before
paying the insured accounts, and that in any case where the fund is not
satisfied as to the validity of a claim for an insured account, it may
require the final determination of a court of competent jurisdiction
before paying such claim.