Arizona Laws 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 based on a pro rata share of the common liability, 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.
Terms Used In Arizona Laws 32-1139
- Fund: means the residential contractors' recovery fund. See Arizona Laws 32-1131
- License: means an authorization for the person who is listed on the electronic, paper or other records maintained by the registrar to act in the capacity of a contractor. See Arizona Laws 32-1101
- Named on a license: means required to be identified pursuant to section 32-1122, subsection B. See Arizona Laws 32-1101
- Person: means a corporation, company, partnership, firm, association, trust, society or natural person. See Arizona Laws 32-1101
- Registrar: means the registrar of contractors. See Arizona Laws 32-1101
- Residential contractor: means a contractor as defined in section 32-1101 who is licensed to perform work on residential property pursuant to this chapter and who engages in residential contracting. See Arizona Laws 32-1131
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
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.
C. After receiving an award from the fund pursuant to this article a person is deemed to have assigned to the registrar the person’s rights for recovery against the responsible residential contractor licensed pursuant to this chapter to the extent of the person’s award from the fund.