1. (1) Prior to payment, the claimant will assign their final judgment which includes their right, title, and interest to the department.
2. (2) Upon payment from the homeowner recovery account, the department will notify the contractor the existing final judgment has been assigned to the department and a payment has been made from the fund to the claimant including the amount paid.
3. (3) Prior to reinstatement of the contractor registration, the final judgment must be satisfied in full including any interest owed to the department.

4. (4) Reimbursement including any interest owed to the department from the contractor may include establishment of a payment plan.

   1. (a) A payment plan may last up to 36 months.
   2. (b) A payment plan will include interest at a rate of one percent per month.
5. (5) Interest owed to the department begins accruing on the date that funds are paid to the claimant.
6. (6) The department has discretion to waive interest pursuant to RCW 43.17.240.
7. (7) When a contractor fails to reimburse the department under this section, the collection of amounts will be handled pursuant to RCW 49.48.086.

[Statutory Authority: 2023 c 213, 2019 c 155, and chapter 18.27 RCW. WSR 26-09-115 (Order 25-07), s 296-200A-9135, filed 4/21/26, effective 7/1/26.]