What occurs if the balance of the Recovery Fund drops below a necessary level?

When the balance of the Recovery Fund falls below a specified threshold, the appropriate action is to charge each licensee a surcharge, which is capped at a maximum of $100. This mechanism is in place to ensure that the fund can continue to operate and fulfill its purpose, which is to provide financial protection to consumers in the event of financial harm caused by a real estate licensee.

The surcharge is a proactive measure designed to replenish the fund, ensuring that adequate resources are available for potential claims. It's important for licensees to understand their financial obligations towards maintaining this fund, as it directly supports consumer protection and the stability of the real estate market.

Other choices provide alternatives that do not align with the standard procedures for maintaining the Recovery Fund. For example, penalizing Alice with a fine, closing the fund, or deferring action until a later time do not address the immediate need to bolster the fund to a necessary level. This emphasizes the significance of the surcharge as an essential tool for maintaining the Recovery Fund's viability.