Which statement regarding the recovery fund is true?

The chosen answer rightly points out that all licensees contribute to the recovery fund, which is designed to protect consumers and enhance the integrity of the real estate profession in Georgia. This fund is critically important in cases where consumers incur losses due to the actions of a licensed real estate professional who is unable to pay for damages awarded in a judgment. By requiring contributions from all licensees, the fund creates a pooled resource that can be used to compensate aggrieved consumers while also motivating licensees to adhere to ethical and professional standards.

The other statements do not accurately reflect the purpose and regulations surrounding the recovery fund. Licensees cannot borrow from the fund as it is not designed for that purpose; the fund is strictly for consumer protection rather than for licensee use. Moreover, investment activities involving the recovery fund are typically restricted to ensure the fund remains solvent and effective in its consumer protection role. Finally, the fund is not intended solely for licensee safety; rather, its primary goal is to provide a safety net for consumers who experience financial losses due to the malpractice of licensed professionals.