Establishment of the Guaranty Fund

(1) Establishment of the GuarantyFund. Pursuant to M.G.L. c. 142A, there shall be established a Residential Contractor's Guaranty Fund within OCABR. (2) Purpose of Fund. The purpose of the fund is to compensate eligible owners for actual losses as defined by 201 CMR 14.14 and M.G.L. c. 142A incurred as a result of a registrant's conduct which has been found by an approved arbitrator or a court of competent jurisdiction to be work which is: (a) performed in a poor or unworkmanlike manner; (b) a common law violation or a violation of any statute or regulation designed for the protection of consumers, including but not limited to M.G.L. c. 93A and prohibited acts listed in M.G.L. c. 142A, § 17. (3) Fund Administrator. A Fund Administrator, appointed by the director of OCABR, shall be responsible for implementing the provisions of M.G.L. c. 142A and 201 CMR 14.00. Fund Claim Requirements. A homeowner may make a claim to the fund only if the homeowner has complied with the provisions of M.G.L. c. 142A, §§ 5 and 7 and has filed their claim with the fund within seven years of the date of the contract .