32-1139. Liability of fund for each
residential contractor's license; suspension of license;
repayment
A. The liability of the fund shall not exceed two hundred thousand dollars for any
one residential contractor's license. If claims against the fund on behalf of any one
residential contractor's license exceed two hundred thousand dollars, the claims shall be
paid in order of the date of entry of the order of the registrar or court, and the
registrar or a court entering an order for payment after the sum of two hundred thousand
dollars has been paid from the fund shall modify the order indicating that no further
recovery from the fund shall be allowed.
B. If any amount is paid from the fund in settlement of a claim arising from the
act, representation, transaction or conduct of a residential contractor, the license of
the contractor shall be automatically suspended by operation of law until the amount
paid from the fund is repaid in full, plus interest at the rate of ten per cent a
year. Any person who is or was, at the time of the act or omission, named on a license
that has been suspended because of a payment from the recovery fund is not eligible to
receive a new license or retain another existing license that also shall be suspended by
operation of law, nor shall any suspended license be reactivated, until the amount paid
from the fund is repaid as provided in this subsection.
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