§ 2-220 Proof of Compliance with Escrow Account Requirements of State Lien Law.

   (a)   As used in this section, the term "financial institution" means a bank, trust company, savings bank, or state or federal savings and loan association located in this state.

   (b)   Every person who applies for a license or for a renewal for a license to solicit, canvass, sell, perform or obtain a home improvement contract as a contractor on or after June 25, 1996 shall submit with the application for such license a true copy of either:

      (1)   An account statement from a financial institution where the applicant has established an escrow account to comply with the requirements of paragraph (a) of subdivision 4 of § 71-a of the lien law and a notarized statement sworn to by the applicant in which the applicant identifies the account for which the statement is issued by the name and address of the financial institution that holds the account, the name of the account holder, which shall be the same as the name of the applicant, and the account number provided by the financial institution, and the applicant affirms that it is the account that has been established for the purpose of complying with such requirements of the state lien law. The account statement filed with the application shall be a statement issued by the financial institution within the preceding 60 days of the date of the application; or

      (2)   A commitment from a surety company licensed in this state under which such surety company is irrevocably bound to issue to the applicant during the term of the applicant's license a bond or contract of indemnity if the applicant elects to post a bond or contract of indemnity with an owner pursuant to paragraph b of subdivision 4 of § 71-a of the lien law, or a commitment from a financial institution under which such institution is irrevocably bound to issue to the applicant during the term of the applicant's license an irrevocable letter of credit if the applicant elects to furnish a letter of credit to an owner pursuant to paragraph b of subdivision 4 of § 71-a of the lien law.

§ 2-221 Content and Cancellation of Contract.

   (a)   Every agreement to perform a home improvement shall be evidenced by a written contract signed by all the parties to the contract and each home improvement contractor shall furnish to the buyer a fully completed legible copy of the entire home improvement contract at the time of its execution and before any work is done. The home improvement contract shall be legible, in plain English and any other language, that was principally used in the oral sales presentation. The contract shall contain all of the following:

      (1)   the date of the transaction, the contractor's name, office address, telephone number and license number.

      (2)   the approximate dates, or estimated dates, when the work will begin and be substantially completed, including a statement of any contingencies that would materially change the approximate or estimated completion date. In addition to the estimated or approximate dates, the contract shall also specify whether or not the contractor and the owner have determined a definite completion date to be of the essence.

      (3)   a description of the work to be performed, the materials to be provided to the owner, including make, model number or any other identifying information, and the agreed upon consideration for the work and materials.

      (4)   a notice to the owner purchasing the home improvement that the contractor or subcontractor who performs on the contract and is not paid may have a claim against the owner which may be enforced against the property in accordance with the applicable lien laws.

      (5)   a notice to the owner purchasing the home improvement that the home improvement contractor is legally required to deposit all payments received prior to completion in accordance with subdivision four of § 71-a of the New York State Lien and that, in lieu of such deposit, the home improvement contractor may post a bond or contract of indemnity with the owner guaranteeing the return or proper application of such payments to the purposes of the contract.

      (6)   if the contract provides for one or more progress payments to be paid to the home improvement contractor by the owner before substantial completion of the work, a schedule of such progress payments showing the amount of each payment, as a sum in dollars and cents, and specifically identifying the state of completion of the work or services to be performed, including any materials to be supplied before each such progress payment is due. The amount of any such progress payments shall bear a reasonable relationship to the amount of work to be performed, materials to be purchased, or expenses for which the contractor would be obligated at the time of payment.

      (7)   any advertised representation including, but not limited to, any charge, guaranty, or warranty, shall be clearly stated and made a part of the home improvement contract.

      (8)   a clause wherein the contractor agrees to furnish the buyer with a certificate of Workers' Compensation Insurance prior to commencement of work pursuant to the contract.

      (9)   a clause wherein the contractor agrees to procure all permits required by local law.

      (10)   in immediate proximity to the space reserved in the contract for the signature of the buyer, in bold face type a minimum size of 10 points, a statement in the following form:

      YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.

   (b)   The contractor shall furnish to the buyer at the time s/he signs the home improvement contract a separate completed form in duplicate captioned "NOTICE OF CANCELLATION" which shall be attached to the contract and easily detachable, and which shall contain in ten point bold face type, in English and in any other language used in the contract; the name and address of the contractor, the date of the transaction, the date until which buyer may give notice of cancellation, and the following statement:

NOTICE OF CANCELLATION

(enter date of transaction)

______________________
(Date)

   YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.

   IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELLED.

   IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT YOUR RESIDENCE, IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR SALE; OR YOU MAY IF YOU WISH, COMPLY WITH THE INSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF THE GOODS AT THE SELLER'S EXPENSE AND RISK.

   IF YOU DO MAKE THE GOODS AVAILABLE TO THE SELLER AND THE SELLER DOES NOT PICK THEM UP WITHIN 20 DAYS OF THE DATE OF YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE THE GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.

   TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELEGRAM, TO (Name of seller), AT (address of seller's place of business) NOT LATER THAN MIDNIGHT OF

______________________.
(Date)

I HEREBY CANCEL THIS TRANSACTION.

______________________
(Date)

______________________
(Buyer's Signature)

   (c)   Cancellation occurs when written notice of cancellation is given to the home improvement contractor. Notice of cancellation, if given by mail, shall be deemed given when deposited in a mailbox properly addressed and postage prepaid. Notice of cancellation shall be sufficient if it indicates the intention of the owner not to be bound.

   (d)   The contractor shall inform the buyer orally, at the time s/he signs the contract, of his or her right to cancel.

   (e)   The contractor shall not misrepresent in any manner the buyer's right to cancel.

   (f)   Until the contractor has complied with 6 RCNY §§ 2-221(a)(10) and 2-221(b) the buyer or any other person obligated for any part of the contract price may cancel the home improvement contract by notifying the contractor at any time, in any manner and by any means of his or her intention to cancel. The period prescribed by 6 RCNY § 2-221(a)(10) shall begin to run from the time the contractor complies with 6 RCNY §§ 2-221(a)(10) and 2-221(b).

   (g)   The buyer's notice of cancellation to the contractor need not take the form prescribed and shall be sufficient if it indicates the buyer's intention not to be bound.

   (h)   The contractor shall not fail or refuse to honor any valid notice of cancellation by the buyer and within ten business days after the receipt of such notice, the contractor shall

      (1)   refund all payments made under the contract;

      (2)   cancel and return any negotiable instrument executed by the buyer in connection with the contract;

      (3)   take any action necessary or appropriate to terminate promptly any security interest created in the transaction; and

      (4)   within ten business days of receipt of the buyer's notice of cancellation the contractor shall notify the buyer whether the contractor intends to repossess or to abandon any shipped or delivered materials.

   (i)   The contractor shall not negotiate, sell, transfer or assign any note or other evidence of indebtedness to a finance company or other third party prior to midnight of the fifth business day following the day the contract was signed.

   (j)   A home improvement contract may not be cancelled if the buyer initiated the contract and requested commencement of work without delay because of an emergency, provided that the buyer furnishes the contractor with a separate dated and signed personal statement in the buyer's handwriting describing the situation requiring immediate remedy and expressly acknowledging and waiving the right to cancel the contract within three business days.

   (k)   For purposes of this section a business day is any calendar day except Sunday, or the following business holidays: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran's Day, Thanksgiving Day, and Christmas Day.

(Amended City Record 12/1/2020, eff. 12/31/2020)

§ 2-222 Advertising and Selling Practices.

   (a)   License number. All advertising and sales literature must contain the license number of the contractor. For purposes of this section, an alphabetical listing in a telephone directory shall not be considered advertising.

   (b)   Prices and illustrations. Prices and descriptions of articles advertised shall be so placed in relation to any illustration that they will not be deceptive or misleading. An advertisement shall not be so designed as to give the impression that the price or terms of the featured merchandise apply to other merchandise in the advertisement when such is not the fact. An advertisement shall not be used which features merchandise at a price or terms boldly displayed, together with illustrations of higher-priced merchandise, so arranged as to give the impression that the lower price or more favorable terms apply to the higher priced merchandise, when such is not the fact.

   (c)   Headlines. Headings shall be free from exaggeration or deception. For example, a heading which refers to a different make, brand, grade, or quality than the item or items illustrated or listed immediately, therewith shall not be used. Headings and captions shall conform with the descriptions in the text.

   (d)   "Savings" not a selling price. A savings claim shall not be expressed in any manner which implies that the amount specified is the selling price of the merchandise.

   (e)   Descriptions and illustrations of advertised items or offers shall accurately portray the products to be sold as to size, quality, quantity and design.

   (f)   Materials. Any description in advertising or selling of materials to be furnished shall be accurate and there shall be no statement or implication that material will be of a particular type when such is not in fact the case.

   (g)   Advertised price, limitations. When a price or specific credit terms are featured in an advertisement, the advertisement shall accurately describe what is being offered at that price or terms (e.g. Where an item such as "10 feet by 16 feet Extension," "10 feet by 15 feet Basement," etc., is featured at a price or specific credit terms, this shall mean that a finished extension, basement, etc., will be built at the advertised price or terms). Any limitations or conditions on what will be supplied at the featured price or on credit terms shall be clearly and conspicuously stated in immediate conjunction with the featured statement (e.g.: "14 feet by 21 feet Frame Garage-Unpainted," "10 feet by 15 feet Extension – Shell Only.").

   (h)   Installation charge. If installation is extra, the advertising shall clearly and conspicuously disclose the fact in immediate conjunction therewith. For example:

"Installation extra"
"Plus installation"
"Installation at extra cost"

   (i)   Accessories and extra charge. If the price advertised does not include all of the accessories which either appear in the advertisement, or which are necessary to effect proper installation and the use of the item (such as hardware, panels, frames, etc.), the advertisement shall state that fact clearly and prominently in dose conjunction with the advertised price. Extra charges shall not be used as a device to disguise the actual selling price of merchandise.

   (j)   Delivery charges. If an extra charge is required to make delivery of any advertised home improvement or part thereof, such requirement shall be clearly and conspicuously stated in the advertisement.

   (k)   "Factory to you," "No dealers." General statements such as "Factory to You," "Direct to You," "Buy from Manufacturer," "Save the Middleman's Profit," or phrases of similar meaning shall not be used unless the advertiser is actually the maker or producer of the merchandise advertised or offered for sale.

   (l)   Guaranty or warranty. If reference is made to a guaranty or warranty or the word "guaranteed" or "warranteed" is used, the terms, conditions, and period of time covered thereby shall be clearly and conspicuously disclosed in the advertisement. The terms shall indicate whether "labor and material only," "repair," "replacement," or "full (partial) refund" is offered. Any limitations shall be disclosed in the advertisement.

   (m)   Reasonable fulfillment, "Lifetime." Guaranty shall not extend for a period of time beyond the normal life of the item or service, or in the case of guarantees against defective materials and workmanship, beyond the time within which defective materials and workmanship are likely to show up. "Lifetime" and other long-term guarantees shall not be made.

   (n)   Credit and credit charges. All statement and claims regarding installment buying plans, and finance, credit service, carrying or service charges, etc., including references to down-payments and amounts and frequency of payments, shall be accurate and dearly understandable, and made in good faith.

   (o)   Credit terms. Where any repayment price is offered, it shall be stated in specific amounts per month.

   (p)   Price reductions. Claims which state or imply a price reduction or savings from the advertiser's previous price, whether as a dollar amount or percentage, must be based on the advertiser's usual and customary selling price for the item in the normal and regular course of his or her business. Such claims shall not be based on isolated or infrequent sales, on fictitious list prices, or by "guesstimating."

   (q)   Phrases featuring a sale with a stated time limitation (e.g. "3-Day Sale") shall be used only when the advertised items are to be taken off sale and will revert to a higher price for a reasonable length of time, immediately following the sale.

   (r)   Claimed results. Claims as to performance, protection, results which will be obtained by or realized from a particular home improvement product or service shall be based on known and provable facts. Extravagant claims such as "cuts fuel bill 30 percent," "outlasts . . ." the accuracy of which is dependent on factors over which the advertiser or seller has no control, should not be used.

   (s)   Model home and referral offers. No advertisement shall promise to any buyer or prospective buyer that his or her dwelling will serve as a so-called "model home" or "advertising job," or other similar representation, wherein the buyer or prospective buyer is led into believing that s/he will be paid a commission or other compensation for any sale made in the vicinity or within any specified distance from his or her home, or that the cost of the purchase of any home improvement product or service will thereby be reduced or fully paid.

   (t)   Insured and bonded. Where claims of being insured or bonded appear in an advertisement, the nature of the insurance or bond shall be distinctly stated in the advertisement.

   (u)   Pricing. If a price ("per square foot," or other basis) is quoted in the advertising of residential aluminum siding which does not include all costs for labor, parts, and accessories for the proper functioning and appearance of such installed product (e.g. starter-strips, door and window trim, window head flashing, back-up pieces and corner pieces), it shall be clearly and conspicuously qualified in conjunction therewith by some explanatory statement, such as "Panels Only – Necessary Accessories at Extra Cost."

§ 2-223 Prime Contractor's Duties and Responsibilities.

   (a)   In the performance of any Home Improvement Contract it shall be the non-delegable duty and obligation of the prime contractor to secure or see to the securing of each and every permit, license, certificate of occupancy, special exception or the like necessary to the proper completion of such contract in accordance with applicable state or local building laws.

   (b)   Each home improvement contractor shall maintain books of account, copies of all contracts with buyers, and other such records as shall properly and completely reflect all transactions involving the home improvement business. These records shall be maintained for six years or the length of time of the contract guarantee, whichever is longer.

   (c)   A home improvement contractor must treat all funds received from a customer pursuant to a home improvement contract as trust funds to be applied solely to the payment of expenses directly related to the home improvement. Such funds may not be applied to the payment of expenses unrelated to the home improvement unless and until the home improvement is completed and all the expenses for direct labor, material and subcontractors related thereto have been paid by the contractor.

   (d)   Except as provided in 6 RCNY § 2-221(j), the home improvement contractor shall not perform or cause or permit the performance of any of the following actions until after the three day cancellation period has expired and s/he is reasonably satisfied that the customer has not exercised his or her right of cancellation:

      (1)   Disburse any money other than in escrow;

      (2)   Make any physical changes in the property of the customer;

      (3)   Perform any work or service for the buyer; or

      (4)   Make any deliveries to the residence of the customer if the creditor has retained or will acquire a security interest other than one arising by operation of law.

§ 2-224 Home Improvement Business Trust Fund.

   (a)   Establishment. A Home Improvement Business Trust Fund (hereinafter, "the Fund") is hereby established to provide for the payment of outstanding awards to aggrieved consumers and fines owed to the Department. The Fund shall be administered by the Comptroller of the City of New York pursuant to Section 93(h) of the Charter.

   (b)   Participation in the Fund.

      (1)   Home improvement licensees may elect to participate in the Fund in lieu of furnishing a bond as required by the Home Improvement Business Law Bond Requirement which was imposed by the Commissioner on February 1, 1983, pursuant to § 20-115 of the New York City Administrative Code. The Commissioner hereby waives said bond requirement, which appears as 6 RCNY § 2-225, for any licensee who elects to participate in the Fund pursuant to the provisions of this section.

      (2)   Any home improvement license applicant who elects to participate in the Fund must submit to the Department a check in the amount of two hundred dollars, made payable to the New York City Department of Consumer and Worker Protection, before a license will be issued. Any bonded licensee may elect to participate in the Fund in lieu of continued compliance with the Bond Requirement of 6 RCNY § 2-225 by causing the Department to receive a check in the amount of two hundred dollars, made payable to the New York City Department of Consumer and Worker Protection, prior to the expiration or cancellation date of the licensee's bond. All fund participants who elect to continue to participate in the Fund shall contribute two hundred dollars upon each renewal of their license. Any fund participant who elects not to continue to participate in the Fund at the time of renewal shall furnish a bond in accordance with paragraph four of this subdivision and 6 RCNY § 2-225 before the renewal license will be issued. Failure to comply with this paragraph shall constitute a failure to comply with a lawful demand or requirement lawfully made by the Commissioner for purposes of § 20-392 of the Administrative Code.

      (3)   The Commissioner may, from time to time, amend this section to require such additional contributions by participants in the Fund as the Commissioner determines to be necessary to maintain an amount in the Fund which is adequate to fulfill its purposes and to counteract depletion of the Fund resulting from payments made out of the Fund pursuant to 6 RCNY § 2-224(c).

      (4)   Fund participants may discontinue their participation in the Fund at any time by filing a bond pursuant to the Home Improvement Business Law Bond Requirement. No participant will be entitled to a refund of any monies contributed to the Fund unless the Fund is dissolved by the Commissioner. All such refunds will be disbursed in accordance with regulations promulgated by the Commissioner and in effect at the time of such dissolution.

      (5)   Participation in the Fund does not relieve a licensee of any obligation to pay awards, fines, judgments, or arbitration awards rendered against a licensee, or agreed upon settlement amounts. If the Fund is invaded to pay an award, fine, judgment, or arbitration award rendered against such contractor, or a settlement amount pursuant to the provisions herein, no license shall be issued or reinstated to such contractor or to any home improvement business in which such contractor is an officer, shareholder, partner or principal, unless the amount(s) paid out of the Fund on behalf of such contractor is reimbursed by such contractor in full. If the Fund is invaded pursuant to the provisions herein to pay an award, fine, judgment, or arbitration award rendered against a contractor, or a settlement amount, the Department may suspend, revoke, or refuse to renew such contractor's license unless the amount(s) paid out of the Fund on behalf of such contractor is reimbursed by such contractor in full.

      (6)   In the event that a home improvement contractor's license is suspended, revoked, surrendered or the contractor fails to renew its license and the Fund invaded to pay an award, fine, judgment , or arbitration award rendered against such contractor, or a settlement amount pursuant to the provisions herein, the Commissioner or his or her designee shall have discretion to exclude such contractor, or any home improvement business in which such contractor is a principal, from future participation in the Fund. The Commissioner or his or her designee may, in his or her discretion, require such home improvement contractor to comply with the Home Improvement Business Law Bond Requirement.

   (c)   Invasion of the Fund.

      (1)   The Commissioner may require that disbursements be made from the Fund to pay outstanding amounts to consumers and Departmental fines when:

         (i)   the Department has (a) issued or received an administrative hearing decision that found that a home improvement contractor violated a law, ordinance or regulation enforced by the Department; (b) settled a summons or petition that charged a home improvement contractor with the violation of a law, ordinance, or regulation enforced by the Department; (c) resolved a consumer complaint filed against a home improvement contractor with a settlement agreement; or (d) received written notice of a judgment, arbitration award, or settlement agreement against a home improvement contractor that relates to activities for which a license is required; and

         (ii)   the Department has demanded that the home improvement contractor pay an amount in restitution to a consumer as set forth in the decision, settlement, judgment, or arbitration award required by subparagraph (i) of this paragraph; and

         (iii)   the contractor has failed to pay such amount in restitution to a consumer, a Departmental award or fine or satisfy a judgment or arbitration award, within 30 days of the date of the Department's demand for payment or as required by the terms of the settlement agreement; and

         (iv)   Notwithstanding the above, if a contractor has filed a petition for relief under any chapter of Title 11 of the United States Code, the Department may waive the requirements set forth in subparagraphs (ii) or (iii) of this paragraph and (1) require disbursements to be made from the Fund.

      (2)   Disbursements will not be made from the Fund to pay an award, fine, judgment, arbitration award, or settlement amount that is rendered against: a licensee who has furnished a bond, pursuant to the Bond Requirement of 6 RCNY § 2-225; or home improvement contractor who was never licensed by the Department or a participant in the Fund.

      (3)   Disbursements from the Fund will be made at the discretion of the Commissioner or his or her designee and shall be limited to no more than twenty-five thousand dollars for all awards, fines, judgments, arbitration awards, or settlement amounts, arising out of a single home improvement contract.

      (4)   The Commissioner or his or her designee may order that partial payment of awards, fines, judgments, arbitration awards, or settlement amounts be made from the Fund.

      (6)   Nothing contained herein shall be construed to create a right of any person to a portion of any of the Fund, except where the Commissioner directs a disbursement be made from the Fund pursuant to the provisions herein.

      (7)   Nothing contained herein shall be construed to provide for the payment of awards or judgments rendered against Fund participants in personal injury actions.

   (d)   Consumer Claims Process as Alternative Invasion of the Fund. 

      (1)   Where a claim for restitution does not meet the requirements of subparagraph (i) of paragraph (1) of subdivision (c) of this section, the Commissioner may require that disbursements be made from the Fund to a consumer who has fully cooperated, participated, and completed the Department’s mediation process related to a claim against a home improvement contractor involving an alleged violation of a law, regulation, or rule enforced by the Department; provided, however, that such disbursements shall not be made if the consumer’s initial complaint to the Department was made prior to January 1, 2016 or if the balance of the Fund is less than two million dollars. Whether a home improvement contractor cooperated, participated, or completed the Department’s mediation process shall have no impact on whether the Department considers the consumer to have fully cooperated, participated, and completed the Department’s mediation process.

      (2)   Disbursements will not be made from the Fund to pay a claim against: a licensee who has furnished a bond, pursuant to the Bond Requirement of 6 RCNY § 2-225; or a home improvement contractor who was not licensed by the Department at the time of the contract.

      (3)   Disbursements from the Fund pursuant to this subdivision will be made at the discretion of the Commissioner or their designee and shall be limited to no more than ten thousand dollars for all amounts arising out of a single home improvement contract. Prior to disbursement from the Fund, the Commissioner or their designee may require a consumer to submit a claim in a form and format designated by the Commissioner, and provide documentation related to the claim, including but not limited to:

         (i)   A signed contract between such consumer and the home improvement contractor;

         (ii)   Evidence of any amounts paid to the home improvement contractor by the consumer or indebtedness incurred by the consumer as a result of a loan being paid by a lender to the home improvement contractor in the consumer’s name;

         (iii)   Estimates, invoices, or amounts paid to another licensed home improvement contractor to fix or complete the work that was the subject of the contract;

         (iv)   A sworn and notarized statement detailing the claim, the amount of restitution the consumer is seeking up to ten thousand dollars, and the basis for seeking such amount from the Fund; and

         (v)   A sworn and notarized statement specifying account credits, refunds or payments made to the consumer by the home improvement contractor or a third-party, including by an insurance company.

      (4)   The Commissioner or their designee will not direct disbursements to be made from the Fund to pay a claim against a home improvement contractor unless the consumer has provided sufficient documentation to show the claim relates to the home improvement contractor’s failure to duly observe the laws, regulations, and rules governing the conduct of licensed home improvement contractors, including, but not limited to, Subchapter 22 of Chapter 2 of Title 20 the Administrative Code and 6 RCNY Chapter 2, Subchapter V.

      (5)   The Commissioner or their designee may order that partial payment of an amount related to the claim be made from the Fund.

      (6)   Nothing contained herein shall be construed to limit the rights and remedies of any party, including the Department, to pursue a cause of action against a home improvement contractor who is a participant in the Fund.

      (7)   Nothing contained herein shall be construed to create a right of any person to a portion of any of the Fund, except where the Commissioner directs a disbursement be made from the Fund pursuant to the provisions herein.

      (8)   Nothing contained herein shall be construed to provide for the payment of claims related to personal injury.

      (9)   Disbursements from the Fund pursuant to this subdivision shall not be considered an award, fine, judgment, arbitration award, or settlement amount for the purpose of paragraph (5) of subdivision (b) of this section.

   (e)   Accounting. The Commissioner shall, by January 31 of each year, cause an accounting to be made of all of the Fund’s activities during the preceding calendar year.

(Amended City Record 5/20/2015, eff. 6/19/2015; amended City Record 3/3/2023, eff. 4/2/2023; amended City Record 9/20/2023, eff. 10/20/2023)

§ 2-225 Notice of Bond Requirement.

Each home improvement contractor shall furnish a $20,000 bond to the Department of Consumer Affairs conditioned upon:

   (a)   compliance with all laws, rules and regulations covering the conduct of home improvement contractors;

   (b)   payment to the City of New York of any fine, penalty or other obligation imposed by the Department of Consumer Affairs for non-compliance with any law(s), rule(s) or regulation(s) within 30 days of its imposition; and

   (c)   payment of any final judgment against the home improvement contractor pursuant to the requirements of 6 RCNY § 1-15. The bond shall be either a cash bond or a bond executed by a duly authorized surety company in a form acceptable to the Commissioner.