Section 18425.3 Of Article 4. Possession, Conservatorship, And Liquidation By The Commissioner From California Financial Code >> Division 7. >> Chapter 5. >> Article 4.
18425.3
. If the liquidator doubts the validity of any claim, the
liquidator may reject the claim and serve notice of rejection upon
the claimant either by certified mail or personally. A notice of
rejection given by mail, addressed to the claimant at the address set
forth in the claim, shall constitute sufficient notice of the
rejection. Any action upon a claim so rejected must be brought within
30 days after the mailing of the notice or personal service of the
notice in the court in which the liquidation proceeding is pending
for an order to show cause why the claim should not be allowed.
Failure to bring such action within 30 days to enforce the payment of
or establish any rejected claim shall forever bar any such action.