A Virginia borrower is damaged in 2026 when a licensee fails to account for funds it received. Against whom may the damaged borrower bring a claim on the bond?
Correct Answer
C) A claim lies on the bond against the principal or the surety or both
The bond is conditioned on performing all written agreements with borrowers, correctly and accurately accounting for funds received in the licensed business, and conducting the business in conformity with the chapter, and any person damaged by noncompliance may proceed against the principal or surety or both, with aggregate liability capped at the penal sum. Other choices: private claims are expressly allowed; no revocation is a precondition; and the cap is the penal sum rather than the individual loss. Source: Va. Code § 6.2-1604
Why This Is the Correct Answer
The bond is conditioned on performing all written agreements with borrowers, correctly and accurately accounting for funds received in the licensed business, and conducting the business in conformity with the chapter, and any person damaged by noncompliance may proceed against the principal or surety or both, with aggregate liability capped at the penal sum. Other choices: private claims are expressly allowed; no revocation is a precondition; and the cap is the penal sum rather than the individual loss. Source: Va. Code § 6.2-1604
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