Alaska Statutes 06.60.710 – Maximum liability

(a) Payment of a fund claim may not exceed $15,000 for each claimant and $15,000 for each mortgage loan transaction regardless of the number of persons injured or the number of pieces of residential property involved in the mortgage loan transaction.

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Terms Used In Alaska Statutes 06.60.710

department: means the Department of Commerce, Community, and Economic Development. See Alaska Statutes 06.60.990
fund: means the mortgage loan originator surety fund established under Alaska Stat. See Alaska Statutes 06.60.990
individual: means a natural person. See Alaska Statutes 06.60.990
licensee: means a person who holds a license issued under this chapter. See Alaska Statutes 06.60.990
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
Mortgage loan: A loan made by a lender to a borrower for the financing of real property. ^{Source: OCC}
mortgage loan: means a residential mortgage loan. See Alaska Statutes 06.60.990
property: includes real and personal property. See Alaska Statutes 01.10.060

(b) The maximum liability for fund claims against one mortgage loan originator licensee may not exceed $50,000.

(c) If the $50,000 liability limit under (b) of this section is insufficient to pay in full the valid fund claims of all persons who have filed fund claims against one mortgage loan originator licensee, the $50,000 shall be distributed among the claimants in the ratio that their individual fund claims bear to the aggregate of valid fund claims against that mortgage loan originator licensee. The department shall distribute the money among the persons entitled to share in the recovery without regard to the order in which their fund claims were filed.

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