Payments made by the Transaction Recovery Fund to claimants may include an amount for which of the following?

Payments made by the Transaction Recovery Fund to claimants may include an amount for which of the following?

• A. Attorneys' fees
• B. Court costs
• C. Interest
• D. Fines

Answer: (A)

The transaction recovery fund is meant to restore a claimant to the financial position they were in before the licensee’s wrongdoing, including reasonable costs incurred to pursue the claim. Attorney's fees are considered a direct cost of obtaining relief or recovery from the licensee, so they can be reimbursed by the fund. In contrast, court costs, interest, and fines are not treated as recoverable losses from the fund: court costs are procedural costs, interest accrues on the amount owed but isn’t a separate loss caused by the fraud, and fines are penalties on the licensee rather than losses suffered by the claimant. So the fund can cover reasonable attorneys' fees, but not the other items listed.

The transaction recovery fund is meant to restore a claimant to the financial position they were in before the licensee’s wrongdoing, including reasonable costs incurred to pursue the claim. Attorney's fees are considered a direct cost of obtaining relief or recovery from the licensee, so they can be reimbursed by the fund. In contrast, court costs, interest, and fines are not treated as recoverable losses from the fund: court costs are procedural costs, interest accrues on the amount owed but isn’t a separate loss caused by the fraud, and fines are penalties on the licensee rather than losses suffered by the claimant. So the fund can cover reasonable attorneys' fees, but not the other items listed.