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 law requires any homeowners' association that collects assessments for common expenses to obtain and keep a blanket fidelity bond. The bond must cover losses from theft or dishonesty by the HOA’s officers, directors, employees, or its managing agent, with coverage equal to the association’s reserve balance plus one‑quarter of its annual assessment income, but not less than $10,000. This aims to protect homeowners from financial loss caused by internal fraud.

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

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