441—11.3 (217) Application of payment. Payment shall be applied only to debts subject to collection pursuant to subrule 11.2(4).
	 11.3(1) Application of payment to single program area.
	  a.   	 If there is more than one debt in a program, payment shall be applied :
	 (1) 	 First to all debts which have an agreement in chronological order of discovery, and
	 (2) 	 Then to debts which do not have an agreement in chronological order of discovery until all debts have been paid in full or the full payment amount has been exhausted.
	  b.   	 For food assistance, payment shall be applied first to all debts with an agreement and then to debts without an agreement. Within those two groupings, payment shall be applied in the following order:
	 (1) 	 First to state-only debts in chronological order of discovery,
	 (2) 	 Then to intentional program violation (IPV) debts in chronological order of discovery,
	 (3) 	 Then to inadvertent household error (IHE) debts in chronological order of discovery, and
	 (4) 	 Then to agency error debts in chronological order of discovery.
	 11.3(2) Application of payment to multiple program areas. If there are debts in more than one program area of public assistance, payments received shall be applied to those program areas as indicated by the mode of repayment (food assistance benefits, FIP benefits) or as indicated by the client at the time of payment.
	 11.3(3) Application of undesignated cash payment. If an undesignated cash payment is received, it shall be applied to each program area proportionally based on the cumulative balance of all debts in all program areas combined.
	 11.3(4) Application of payment prohibited. Rescinded IAB 11/7/07, effective 11/1/07.