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A contractor's bond claim is filed for $18,000, but the bond amount is only $15,000. How much can the claimant recover from the bond?

Correct Answer

A) $15,000 maximum

Bond recovery is limited to the bond amount. If the bond is $15,000, that is the maximum recovery possible regardless of the claim amount.

Answer Options
A
$15,000 maximum
B
$18,000 if claim is valid
C
Nothing, claim exceeds bond amount
D
Prorated amount based on total claims

Why This Is the Correct Answer

Bond recovery is limited to the bond amount. If the bond is $15,000, that is the maximum recovery possible regardless of the claim amount.

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