A BILL TO BE ENTITLED AN ACT PROVIDING THAT CERTAIN CONDOMINIUM AND PLANNED COMMUNITY ASSOCIATIONS SHALL OBTAIN AND MAINTAIN A FIDELITY BOND INSURING THE ASSOCIATIONS FROM LOSSES RESULTING FROM THEFT OR DISHONESTY COMMITTED BY MEMBERS OF THE EXECUTIVE BOARD OR PERSONS EMPLOYED BY THE ASSOCIATIONS, PROVIDING THAT ANY MANAGEMENT AGENT OR COMPANY HIRED BY AN ASSOCIATION SHALL AT ALL TIMES BE COVERED BY A FIDELITY BOND, AND PROVIDING FINANCIAL AUDIT REQUIREMENTS FOR ASSOCIATIONS.
House committee substitute makes the following changes to the 2nd edition:
Amends GS 47C-3-113.1(a) to change the upper limit of the executive board's bond to $1 million (was $5 million); amends subsection (b) to change the amount of the management agent's bond to an amount at least equal to the annual budgets of all of the agent's clients with an upper limit of $2 million (was, an amount at least equal to the annual operating budget of the association up to $5 million).
Makes identical changes to GS 47F-3-113.1(a) and (b).
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