When the administrator determines that an eligible depository securing public deposits in accordance with this section is a defaulting depository, the administrator shall take steps as promptly as practicable to reimburse public depositors of all uninsured public deposits held by the defaulting depository using the following procedures:

1. The administrator shall determine the amount of uninsured public deposits net of any deposit insurance held by the defaulting depository either with the cooperation of the department of insurance and financial institutions or the receiver appointed for the defaulting depository or by any other means available.

2. The administrator shall assess the amount of the uninsured public deposits determined under paragraph 1 of this section against the defaulting depository. The administrator shall promptly take possession of the eligible collateral deposited by the defaulting depository with the depository’s qualified escrow agent, to the extent necessary to satisfy the administrator’s assessment, and shall liquidate the eligible collateral.

3. On receipt of the liquidated eligible collateral, the administrator shall reimburse the public depositors from the proceeds of the collateral to the extent of the defaulting depository’s deposit liability to the depositor, net of any applicable deposit insurance.