Real Property - As enacted, requires a homeowners' association that collects assessments for common expenses to obtain and maintain a blanket fidelity bond to insure the homeowners' association against losses resulting from theft or dishonesty committed by the officers, directors, or persons employed by the homeowners' association, or committed by any managing agent or employees of the managing agent. - Amends TCA Title 66.

Summary

The bill requires any homeowners' association that gathers common‑area fees to obtain and keep a fidelity bond that protects the association against loss from theft or fraud by its officers, directors, employees, or any managing agent. The bond must equal the HOA’s reserve balance plus 25% of its yearly assessment income, with a minimum of $10,000. This aims to safeguard homeowners’ money from internal misconduct.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

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