Contractors will be assessed a fee for the Transaction Recovery Fund whenever the fund balance is less than

Contractors will be assessed a fee for the Transaction Recovery Fund whenever the fund balance is less than

• A. $100,000
• B. $200,000
• C. $400,000
• D. $600,000

Answer: (C)

The idea is to keep the Transaction Recovery Fund solvent so there are funds available to reimburse consumers who suffer losses due to contractor defaults. In Virginia, a minimum fund balance is maintained, and if the balance falls below that level, a fee is assessed on contractors to bring the fund back up. The threshold is four hundred thousand dollars, so when the fund dips under $400,000, a replenishing fee is charged. A balance of $100,000 or $200,000 would require replenishment, while $600,000 is already above the minimum and would not trigger a fee. The purpose of the fee is to restore the fund to its required level, not to address a surplus.