* NatLUST offers initial payment rates ranging from 85% to 92% of the amount approved for payment by IEPA, depending on where a given claim falls in the payment queue. Readers should note that Because of the way Illinois wrote its claim assignment statute - which exposes NatLUST to the risk of 'intercept' -- NatLUST has chosen to limit the amount it advances in aggregate against any one tank owner's claim to $500,000 or 5% of our Illinois portfolio. When such claims are eventuallly reimbursed it will cause the above table to be distored, where the initial advance rate will appear low and the residual payment very high.

NatLUST July 14, 2008 Comment --- By May 2008 NatLUST determined that the fixed charge component of its 'carrying costs' had been set too high in relation to how fast claims were turning over. This had the effect of making the imputed APR far higher than projected. Accordingly, beginning in June 2008, NatLUST slashed the fixed charge component in many cases by half. NatLUST will continue to evaluate this as it moves forward.

August 23, 2009 Comments -

1. The May 2008 change where we reduced the one time fixed charge has proved to be sound as the implied carrying costs have been coming down in recent months.

2. Readers should note IEPA is reimbursing claims every month; however, it sometimes takes the Comptroller several weeks to issue the checks, which may delay NatLUST's residual payment into the following month.

3. Unlike our other states, where we advance a fixed percentage, in IL we advance anywhere from 85% to 92% depending on where a claim falls in the payment queue. In any given month, the above table will show claims reimbursed that had various initial advance rates. For purposes of this table we are using the average.

Updated August 23, 2009