Section 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.