HLS 11RS-470 ENGROSSED
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2011
HOUSE BILL NO. 227
BY REPRESENTATIVE THIBAUT
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CONDOMINIUMS: Requires condominium associations to carry a fidelity bond
AN ACT1
To enact R.S. 9:1123.113, relative to condominiums; to require condominium associations2
to maintain a fidelity bond; to provide for a coverage amount; to establish a3
minimum coverage amount; to provide for compliance through a managing agent4
who maintains a bond; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 9:1123.113 is hereby enacted to read as follows: 7
ยง1123.113. Fidelity bond required8
A. Any unit owners' association collecting assessments for common9
expenses shall obtain and maintain a blanket fidelity bond covering the officers,10
directors, and persons employed by the unit owners' association, and any managing11
agent and employees of the managing agent.12
B. The bond shall provide coverage in an amount equal to the lesser of one13
million dollars or the amount of reserve balances of the unit owners' association plus14
one-fourth of the aggregate annual assessment of the unit owners' association. The15
minimum coverage amount shall be ten thousand dollars.16
C. Any unit owners' association whose managing agent maintains its own17
bond shall be in compliance with this Section, provided that the managing agent's18
bond meets the requirements set forth in this Section, and that the association is19
named as an additional insured under the managing agent's bond.20 HLS 11RS-470 ENGROSSED
HB NO. 227
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Thibaut HB No. 227
Abstract: Requires condominium unit owners' associations to maintain a fidelity bond.
Proposed law requires any condominium unit owners' association collecting assessments for
common expenses to obtain and maintain a blanket fidelity bond covering the officers,
directors, and persons employed by the unit owners' association and any managing agent and
employees of the managing agent.
Proposed law requires the bond to provide coverage in an amount equal to the lesser of
$1,000,000 or the amount of reserve balances of the unit owners' association plus 1/4 of the
aggregate annual assessment of the unit owners' association.
Proposed law provides that the minimum coverage amount shall be $10,000.
Proposed law provides that any unit owners' association whose managing agent maintains
its own bond shall be in compliance with proposed law, provided that the managing agent's
bond meets the requirements set forth in proposed law, and that the association is named as
an additional insured under the managing agent's bond.
(Adds R.S. 9:1123.113)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Commerce to the original
bill.
1. Made a technical correction.