(1) An individual may assert by affidavit that an affidavit of indigency under Section 78A-2-302, action, or appeal is:
(a) false;
(b) frivolous or without merit; or
(c) malicious.
(2) Upon receipt of an affidavit in accordance with Subsection (1), the court may notify the affiant of the challenge and set a date, not less than five days from receipt of the notice, requiring the affiant to appear and show cause why the affiant should not be required to:
(a) post a bond for the costs of the action or appeal; or
(b) pay the legal fees for the action or appeal.
(3) The court may dismiss the action or appeal if:
(a) the affiant does not appear;
(b) the affiant appears and the court determines the affidavit is false, frivolous, without merit, or malicious; or
(c) the court orders the affiant to post a bond or pay the legal fees and the affiant fails to do so.