C-37 Statutes & Rules Exam Practice 2025 – Comprehensive Prep Guide

In the context of the Residential Contractors' Recovery Fund, the correct answer regarding the percentage of interest that a contractor must repay on an awarded claim is indeed 10% annual interest. This rate is specified to ensure that the fund maintains its ability to compensate homeowners who have suffered financial losses due to the actions of a contractor. The rationale behind this interest rate is to encourage contractors to repay the fund efficiently and promptly, reflecting a fair compensation for the time value of money.

The selection of any other interest rates as options is not applicable, as they do not align with the established guidelines set forth for the fund. The 10% rate serves both a punitive and a corrective function, motivating contractors to fulfill their financial obligations while also providing some degree of compensation to homeowners who have had to rely on the recovery fund for assistance. Understanding this particular interest rate is crucial for contractors to grasp their responsibilities and the implications of their actions relating to finances and the recovery fund.