54.1-2113 - Establishment and maintenance of fund, duty of Director, assessments of regulants.
§ 54.1-2113. Establishment and maintenance of fund, duty of Director,assessments of regulants.
A. Each initial regulant at the time of licensure shall be assessed twentydollars, which shall be specifically assigned to the fund. Initial paymentsmay be incorporated in any application fee payment and transferred to thefund by the Director within thirty days.
B. All assessments, except initial assessments, for the fund shall bedeposited, within three work days after their receipt by the Director, in oneor more federally insured banks, savings and loan associations or savingsbanks located in the Commonwealth. Funds deposited in banks, savings and loanassociations or savings banks, to the extent in excess of insurance affordedby the Federal Deposit Insurance Corporation or other federal insuranceagency, shall be secured under the Security for Public Deposits Act (§2.2-4400 et seq.). The deposit of these funds in federally insured banks,savings institutions or savings banks located in the Commonwealth shall notbe considered investment of such funds for purposes of this section. Fundsmaintained by the Director may be invested in securities that are legalinvestments for fiduciaries under the provisions of § 26-40.01. The Directorshall maintain in his office an accurate record of all transactions involvingthe fund, which records shall be open for inspection and copying by thepublic during the normal business hours of the Director.
C. The minimum balance of the fund shall be $400,000. Whenever the Directordetermines that the balance of the fund is or will be less than such minimumbalance, the Director shall immediately inform the Board. At the same time,the Director may recommend that the Board transfer a fixed amount of interestearnings to the fund to bring the balance of the fund to the amount requiredby this subsection. Such transfer of interest shall be considered by theBoard within thirty days of the notification of the Director.
D. If available interest earnings are insufficient to bring the balance ofthe fund to the minimum amount required by this section, or if a transfer ofavailable interest earnings to the fund has not occurred, the Board shallassess each regulant within thirty days of notification by the Director, asum sufficient to bring the balance of the fund to the required minimumamount. The Board may order an assessment of regulants at any time inaddition to any required assessment. No regulant shall be assessed a totalamount of more than twenty dollars during any biennial license period or partthereof, the biennial period expiring on June 30 of each even-numbered year.Assessments of regulants made pursuant to this subsection may be issued bythe Board (i) after a determination made by it or (ii) at the time of licenserenewal.
E. At the close of each fiscal year, whenever the balance of the fund exceeds$2,000,000, the amount in excess of $2,000,000 shall be transferred to theVirginia Housing Partnership Revolving Fund. Except for transfers pursuant tothis subsection, there shall be no transfers out of the fund, includingtransfers to the general fund, regardless of the balance of the fund.
F. If the Board determines that all regulants will be assessed concurrently,notice to the regulants of such assessments shall be by first-class mail, andpayment of such assessments shall be made by first-class mail to the Directorwithin forty-five days after the mailing to regulants of such notice.
If the Board determines that all regulants will be assessed in conjunctionwith license renewal, notice to the regulants may be included with thelicense renewal notice issued by the Board. The assessment shall be due withthe payment of the license renewal fees. No license shall be renewed orreinstated until any outstanding assessments are paid.
G. If any regulant fails to remit the required payment mailed in accordancewith subsection F within forty-five days of the mailing, the Director shallnotify the regulant by first-class mail at the latest address of record filedwith the Board. If no payment has been received by the Director within thirtydays after mailing the second notice, the license shall be automaticallysuspended. The license shall be restored only upon the actual receipt by theDirector of the delinquent assessment.
H. The costs of administering the act shall be paid out of interest earned ondeposits constituting the fund. The remainder of the interest, at thediscretion of the Board, may (i) be used for providing research and educationon subjects of benefit to real estate regulants or members of the public,(ii) be transferred to the Virginia Housing Partnership Revolving Fund, or(iii) accrue to the fund in accordance with subsection C.
(1977, c. 69, § 54-765.3; 1982, c. 6; 1984, c. 266; 1987, c. 555; 1988, c.765; 1990, c. 3; 1992, cc. 348, 810; 1997, c. 82; 2007, c. 791.)