{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/54.1-1120.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/54.1-1120.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/54.1-1120.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/54.1-1120.1.html"}],"law_id":73226,"edition_id":1,"section_id":73226,"structure_id":13920,"section_number":"54.1-1120.1","catch_line":"Recovery on bond","history":"2017, c. 572.","full_text":"A\n\nIf a contractor who elected continuous bonding under § 54.1-1106 or 54.1-1108 fails to satisfy a judgment awarded by a court of competent jurisdiction for improper or dishonest conduct, the judgment creditor shall have a claim against the surety bond for such damages. In order to recover the amount of any unpaid judgment, up to but not exceeding the maximum liability as set forth in § 54.1-1106 or 54.1-1108, the judgment creditor shall meet the eligibility requirements of subsection A of § 54.1-1120 and bring suit directly on the surety bond no later than 12 months after the judgment becomes final.B\n\nThe liability of such surety shall be limited to actual monetary loss, court costs, and attorney fees assessed against the contractor as part of the underlying judgment. The liability of such surety shall not include any sums representing interest or punitive damages assessed against the contractor.C\n\nThe surety company shall notify the Board when a claim is made against a contractor’s bond, when a claim is paid, and when the bond is cancelled. Such notification shall include the amount of claim and the circumstances surrounding the claim. Notification of cancellation shall include the effective date and reason for cancellation. The bond may be cancelled as to future liability by the contractor’s surety upon 30 days’ notice to the Board.","order_by":null,"text":{"0":{"id":263587,"text":"If a contractor who elected continuous bonding under § 54.1-1106 or 54.1-1108 fails to satisfy a judgment awarded by a court of competent jurisdiction for improper or dishonest conduct, the judgment creditor shall have a claim against the surety bond for such damages. In order to recover the amount of any unpaid judgment, up to but not exceeding the maximum liability as set forth in § 54.1-1106 or 54.1-1108, the judgment creditor shall meet the eligibility requirements of subsection A of § 54.1-1120 and bring suit directly on the surety bond no later than 12 months after the judgment becomes final.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":263588,"text":"The liability of such surety shall be limited to actual monetary loss, court costs, and attorney fees assessed against the contractor as part of the underlying judgment. The liability of such surety shall not include any sums representing interest or punitive damages assessed against the contractor.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":263589,"text":"The surety company shall notify the Board when a claim is made against a contractor’s bond, when a claim is paid, and when the bond is cancelled. Such notification shall include the amount of claim and the circumstances surrounding the claim. Notification of cancellation shall include the effective date and reason for cancellation. The bond may be cancelled as to future liability by the contractor’s surety upon 30 days’ notice to the Board.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":13920,"edition_id":1,"name":"Virginia Contractor Transaction Recovery Act","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13234,"metadata":{},"date_created":"2026-06-26 03:46:18","date_modified":"2026-06-26 03:46:18","permalink":{"id":239527,"object_type":"structure","relational_id":13920,"identifier":"2","token":"54.1\/II\/11\/2","url":"\/54.1\/II\/11\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13234,"edition_id":1,"name":"Contractors","identifier":"11","label":"chapter","depth":3,"order_by":1,"parent_id":12755,"metadata":{},"date_created":"2026-06-26 03:44:29","date_modified":"2026-06-26 03:44:29","permalink":{"id":239423,"object_type":"structure","relational_id":13234,"identifier":"11","token":"54.1\/II\/11","url":"\/54.1\/II\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12755,"edition_id":1,"name":"Professions and Occupations Regulated by the Department of Professional and Occupational Regulation and Boards Within the Department","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12754,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239415,"object_type":"structure","relational_id":12755,"identifier":"II","token":"54.1\/II","url":"\/54.1\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12754,"edition_id":1,"name":"Professions and Occupations","identifier":"54.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239313,"object_type":"structure","relational_id":12754,"identifier":"54.1","token":"54.1","url":"\/54.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85483,"structure_id":13920,"section_number":"54.1-1118","catch_line":"Definitions","url":"\/54.1-1118\/","token":"54.1\/II\/11\/2\/54.1-1118","metadata":false},{"id":65141,"structure_id":13920,"section_number":"54.1-1119","catch_line":"Assessments by Director; assignment to Fund; minimum balance; notice; penalties; costs of administration","url":"\/54.1-1119\/","token":"54.1\/II\/11\/2\/54.1-1119","metadata":false},{"id":86855,"structure_id":13920,"section_number":"54.1-1120","catch_line":"Recovery from Fund generally","url":"\/54.1-1120\/","token":"54.1\/II\/11\/2\/54.1-1120","metadata":false},{"id":73226,"structure_id":13920,"section_number":"54.1-1120.1","catch_line":"Recovery on bond","url":"\/54.1-1120.1\/","token":"54.1\/II\/11\/2\/54.1-1120.1","metadata":false},{"id":60926,"structure_id":13920,"section_number":"54.1-1121","catch_line":"Investigations","url":"\/54.1-1121\/","token":"54.1\/II\/11\/2\/54.1-1121","metadata":false},{"id":54973,"structure_id":13920,"section_number":"54.1-1122","catch_line":"Consideration of applications for payment","url":"\/54.1-1122\/","token":"54.1\/II\/11\/2\/54.1-1122","metadata":false},{"id":62297,"structure_id":13920,"section_number":"54.1-1123","catch_line":"Limitations upon recovery from Fund; certain actions not a bar to recovery","url":"\/54.1-1123\/","token":"54.1\/II\/11\/2\/54.1-1123","metadata":false},{"id":86010,"structure_id":13920,"section_number":"54.1-1124","catch_line":"Participation by Board or Director in proceeding","url":"\/54.1-1124\/","token":"54.1\/II\/11\/2\/54.1-1124","metadata":false},{"id":87375,"structure_id":13920,"section_number":"54.1-1125","catch_line":"Assignment of claimant's rights to Board; payment of claim","url":"\/54.1-1125\/","token":"54.1\/II\/11\/2\/54.1-1125","metadata":false},{"id":76787,"structure_id":13920,"section_number":"54.1-1126","catch_line":"Repealed","url":"\/54.1-1126\/","token":"54.1\/II\/11\/2\/54.1-1126","metadata":false},{"id":56430,"structure_id":13920,"section_number":"54.1-1127","catch_line":"No waiver by Board of disciplinary action against regulant","url":"\/54.1-1127\/","token":"54.1\/II\/11\/2\/54.1-1127","metadata":false}],"previous_section":{"id":86855,"structure_id":13920,"section_number":"54.1-1120","catch_line":"Recovery from Fund generally","url":"\/54.1-1120\/","token":"54.1\/II\/11\/2\/54.1-1120","metadata":false},"next_section":{"id":60926,"structure_id":13920,"section_number":"54.1-1121","catch_line":"Investigations","url":"\/54.1-1121\/","token":"54.1\/II\/11\/2\/54.1-1121","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/54.1-1120.1\/","history_text":"

This law was first created in 2017. The record of its establishment is cataloged in chapter 572<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":62297,"section_number":"54.1-1123","catch_line":"Limitations upon recovery from Fund; certain actions not a bar to recovery","order_by":null,"url":"\/54.1-1123\/"}],"refers_to":[{"id":73647,"section_number":"54.1-1106","catch_line":"Application for Class A license; fees; examination; issuance","order_by":null,"url":"\/54.1-1106\/"},{"id":66493,"section_number":"54.1-1108","catch_line":"Application for Class B license; fees; examination; issuance","order_by":null,"url":"\/54.1-1108\/"},{"id":86855,"section_number":"54.1-1120","catch_line":"Recovery from Fund generally","order_by":null,"url":"\/54.1-1120\/"}],"permalink":{"id":239541,"object_type":"law","relational_id":73226,"identifier":"54.1-1120.1","token":"54.1\/II\/11\/2\/54.1-1120.1","url":"\/54.1-1120.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/54.1-1120.1\/","token":"54.1\/II\/11\/2\/54.1-1120.1","dublin_core":{"Title":"Recovery on bond","Type":"Text","Format":"text\/html","Identifier":"\u00a7 54.1-1120.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If a contractor<\/span> who elected continuous bonding under § 54.1-1106<\/a> or 54.1-1108<\/a> fails to satisfy a judgment awarded by a court<\/span> of competent jurisdiction<\/span> for improper or dishonest conduct<\/span>, the judgment creditor<\/span> shall have a claim against the surety<\/span> bond<\/span> for such damages<\/span>. In order<\/span> to recover the amount of any unpaid judgment, up to but not exceeding the maximum liability as set forth in § 54.1-1106<\/a> or 54.1-1108<\/a>, the judgment creditor<\/span> shall meet the eligibility requirements of subsection A of § 54.1-1120<\/a> and bring suit directly on the surety<\/span> bond<\/span> no later than 12 months after the judgment becomes final. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The liability of such surety<\/span> shall be limited to actual monetary loss, court<\/span> costs, and attorney fees assessed against the contractor<\/span> as part of the underlying judgment. The liability of such surety<\/span> shall not include any sums representing interest or punitive damages<\/span> assessed against the contractor<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The surety<\/span> company shall notify the Board<\/span> when a claim is made against a contractor<\/span>’s bond<\/span>, when a claim is paid, and when the bond<\/span> is cancelled. Such notification shall include the amount of claim and the circumstances surrounding the claim. Notification of cancellation shall include the effective date and reason for cancellation. The bond<\/span> may be cancelled as to future liability by the contractor<\/span>’s surety<\/span> upon 30 days’ notice to the Board<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRECOVERY ON BOND (\u00a7 54.1-1120.1)\n\nA. If a contractor who elected continuous bonding under § 54.1-1106 or\n54.1-1108 fails to satisfy a judgment awarded by a court of competent\njurisdiction for improper or dishonest conduct, the judgment creditor shall have\na claim against the surety bond for such damages. In order to recover the amount\nof any unpaid judgment, up to but not exceeding the maximum liability as set\nforth in § 54.1-1106 or 54.1-1108, the judgment creditor shall meet the\neligibility requirements of subsection A of § 54.1-1120 and bring suit\ndirectly on the surety bond no later than 12 months after the judgment becomes\nfinal.\n\nB. The liability of such surety shall be limited to actual monetary loss, court\ncosts, and attorney fees assessed against the contractor as part of the\nunderlying judgment. The liability of such surety shall not include any sums\nrepresenting interest or punitive damages assessed against the contractor.\n\nC. The surety company shall notify the Board when a claim is made against a\ncontractor’s bond, when a claim is paid, and when the bond is cancelled.\nSuch notification shall include the amount of claim and the circumstances\nsurrounding the claim. Notification of cancellation shall include the effective\ndate and reason for cancellation. The bond may be cancelled as to future\nliability by the contractor’s surety upon 30 days’ notice to the\nBoard.\n\nHISTORY: 2017, c. 572.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}