ENROLLED
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
ACT No. 84
Regular Session, 2011
HOUSE BILL NO. 227
BY REPRESENTATIVES THIBAUT, GREENE, AND HARDY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
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; to require proof of the bond to be maintained on the premises5
of the condominium; to require inspection of the proof upon request; to require6
written or electronic notice of the bond; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 9:1123.113 is hereby enacted to read as follows: 9
ยง1123.113. Fidelity bond required10
A. Any unit owners' association collecting assessments for common11
expenses shall obtain and maintain a blanket fidelity bond covering the officers,12
directors, and persons employed by the unit owners' association, and any managing13
agent and employees of the managing agent.14
B. The bond shall provide coverage in an amount equal to the lesser of one15
million dollars or the amount of reserve balances of the unit owners' association plus16
one-fourth of the aggregate annual assessment of the unit owners' association. The17
minimum coverage amount shall be ten thousand dollars.18
C. Any unit owners' association whose managing agent maintains its own19
bond shall be in compliance with this Section, provided that the managing agent's20
bond meets the requirements set forth in this Section, and that the association is21
named as an additional insured under the managing agent's bond.22 ENROLLEDHB NO. 227
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
D.(1) The unit owners' association or the managing agent shall maintain1
proof of the bond required by this Section on the premises of the condominium at all2
times.3
(2) The unit owners' association or the managing agent shall make the proof4
available for inspection by a member of the condominium unit owners' association5
upon request of the member.6
(3) The unit owners' association or the managing agent shall also provide7
every member of the unit owners' association with written or electronic notice of the8
bond as well as a statement notifying the member that the member has a right to9
inspect the proof of the bond required by this Section.10
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: