Payments from the Guaranty Fund

(1) Award Amounts. The Fund Administrator may award: (a) to any claimant no more than $25,000 or the amount necessary to compensate the claimant for the claimant's actual loss, whichever is less; and (b) no more than $150,000 per 12-month period in aggregate claims which are the result of a single registrant's actions pursuant to M.G.L. c. 142A, unless the registrant has repaid the fund for the full amount required pursuant to M.G.L. c. 142A, § 8; provided, however, that it is within the discretion of the fund administrator to waive the limit of aggregate claims with cause. (2) Registered Contractor Requirement. Payments from the fund may only be awarded to an "Owner" who entered into a written contract with a registered contractor, or subcontractor, as defined in 201 CMR 14.02. (3) Unregistered Contractors. Payments from the fund may not be awarded in cases where the home improvement contractor, or subcontractor, was unregistered on the date of the contract. (4) Building Permit Requirement. Payments from the fund may not be awarded to an owner who secured their own building permit for the contracted work in dispute unless the contractor, or subcontractor failed to inform the homeowner, as required by M.G.L. c. 142A, § 2, that homeowners who secure their own permits will be so excluded from the fund. (5) Actual Loss Payments. Payments from the fund may only be awarded for actual losses as defined by 201 CMR 14.14 and M.G.L. c. 142A and may not be awarded for consequential or punitive damages, personal injury, attorney's fees, court or arbitration costs or interest. (6) Application. Payments from the fund may be awarded to an owner only after the fund administrator receives a completed application form provided by OCABR. (7) Additional Application Documents. Accompanying the application form, the homeowner shall submit a copyof anycourt or arbitration judgment obtained against the registrant including findings of fact and conclusions of law, if any; and evidence demonstrating that the homeowner has exhausted reasonable efforts to collect. Application Review. Upon receipt by OCABR of the application with all required attachments, the Fund Administrator shall inspect all documents for their veracity. If the Fund Administrator determines that said documents verifythat the owner has exhausted all reasonable efforts to collect the award without success, the fund administrator mayorder payment out of the Guaranty Fund for the amount of the owner's actual loss, not to exceed the statutory limit. (9) Seven-year Application Deadline. Payments from the fund maybe awarded onlyif the Fund Administrator receives an application from the claimant within seven years of the date of the contract. (10) Claims Procedure for Exhausted Fund. If at any time the money deposited in the fund is insufficient to satisfy the approved claim or portion thereof, the Fund Administrator, when sufficient money has been deposited in the fund, shall satisfy the unpaid claims or portions thereof in the order that the claims were originally filed.