                                 CODE OF VIRGINIA

LIMITATIONS UPON RECOVERY FROM FUND; CERTAIN ACTIONS NOT A BAR TO RECOVERY (§
54.1-1123)

A. The maximum claim of one claimant against the Fund based upon an unpaid
judgment arising out of the improper or dishonest conduct of one regulant in
connection with a single transaction involving contracting is limited to
$30,000, including any amount paid from a contractor&#8217;s surety bond under
&#xA7; 54.1-1120.1, regardless of the amount of the unpaid judgment of the
claimant.

B. The aggregate of claims against the Fund based upon unpaid judgments arising
out of the improper or dishonest conduct of any one regulant involving
contracting, is limited by the Board to $100,000 during any biennium. If a claim
has been made against the Fund, and the Board has reason to believe there may be
additional claims against the Fund from other transactions involving the same
regulant, the Board may withhold any payment(s) from the Fund involving such
regulant for a period of not more than one year from the date on which the
claimant is awarded in a court of competent jurisdiction in the Commonwealth the
final judgment on which his claim against the Fund is based. After this one-year
period, if the aggregate of claims against the regulant exceeds $100,000, during
a biennium, $100,000 shall be prorated by the Board among the claimants and paid
from the Fund, less the amount of any applicable contractor&#8217;s bond, in
proportion to the amounts of their judgments against the regulant remaining
unpaid. Claims shall be prorated only after any applicable contractor&#8217;s
bond has been exhausted.

C. Excluded from the amount of any unpaid judgment upon which a claim against
the Fund is based shall be any sums representing interest, or punitive damages,
or any amounts that do not constitute actual monetary loss to the claimants.
Such claim against the Fund may include court costs and attorney fees.

D. If, at any time, the amount of the Fund is insufficient to fully satisfy any
claims or claim filed with the Board and authorized by this Act, the Board shall
pay such claims, claim, or portion thereof to the claimants in the order that
the claims were filed with the Board.

E. Failure of a claimant to comply with the provisions of subdivisions B 1 and 2
and subsection C of &#xA7; 54.1-1120 and the provisions of &#xA7; 54.1-1124
shall not be a bar to recovery under this Act if the claimant is otherwise
entitled to such recovery.

F. The Board shall have the authority to deny any claim which otherwise appears
to meet the requirements of the Act if it finds by clear and convincing evidence
that the claimant has presented false information or engaged in collusion to
circumvent any of the requirements of the Act.

HISTORY: 1980, c. 635, § 54-145.3:5; 1984, c. 270; 1987, cc. 555, 562; 1988, c.
765; 1990, cc. 437, 911; 1997, c. 885; 1999, c. 262; 2005, c. 252; 2015, cc.
409, 710; 2017, c. 572; 2025, cc. 127, 133.