[§436C-3]  Judicial certification.  (a)  The certification of an administering entity under section 436C-2(a) shall be based on the judgment of a district or circuit court in this State that:

     (1)  Specifies the amount of the default;

     (2)  Finds that the education of the licensee or license applicant was financed by the student loan, student loan repayment contract, or scholarship contract that is in default;

     (3)  Finds that the licensee or license applicant has the ability to cure the default without undue financial hardship; and

     (4)  Includes proof of service of notice to the licensee or license applicant that the judgment will be reported to the licensing authority with a direction to suspend the license, deny the application for a license, or deny the application for renewal or reinstatement of the license;

provided that no finding under paragraph (3) shall be required in the case of a default judgment or if the licensee or license applicant fails to petition the court as provided in section 436C-4.

     (b)  A licensing authority shall act on the certification of an administering entity under section 436C-2 only if the certification complies with this section. [L 2003, c 133, pt of §2]