The Recovery Fund liability for a single licensee may not exceed what amount?

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Prepare for the Principal Lending Manager (PLM) Test. Access multiple choice questions and flashcards with detailed explanations and hints to enhance your learning experience and boost your confidence for test day.

Multiple Choice

The Recovery Fund liability for a single licensee may not exceed what amount?

Explanation:
The Recovery Fund liability is capped per licensee to ensure the fund can cover multiple victims without running out. For a single licensee, the maximum payable from the fund is 45,000, regardless of the number of claims or their size. This cap balances providing a remedy with maintaining the fund’s overall solvency. The other amounts either exceed what the statute allows for one licensee or fall short of the mandated maximum, so they aren’t correct.

The Recovery Fund liability is capped per licensee to ensure the fund can cover multiple victims without running out. For a single licensee, the maximum payable from the fund is 45,000, regardless of the number of claims or their size. This cap balances providing a remedy with maintaining the fund’s overall solvency. The other amounts either exceed what the statute allows for one licensee or fall short of the mandated maximum, so they aren’t correct.

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