Bill
Bill > HB636
MS HB636
MS HB636Homeowners' associations; regulate managing agents of and require financial reviews by.
summary
Introduced
02/06/2020
02/06/2020
In Committee
05/12/2020
05/12/2020
Crossed Over
03/04/2020
03/04/2020
Passed
Dead
06/09/2020
06/09/2020
Introduced Session
2020 Regular Session
Bill Summary
An Act To Regulate Managing Agents Of Homeowners' Associations Regarding Their Deposit And Management Of Association Funds; To Provide Certain Definitions For The Act; To Require Transfers Of Funds Above A Certain Amount To Be Authorized By Prior Written Board Approval; To Prohibit The Managing Agent From Comingling The Funds Of The Association With The Managing Agents Own Money Or With The Money Of Others That The Managing Agent Receives Or Accepts; To Provide That Currently Comingled Funds Shall Be Separated By A Certain Date; To Require The Managing Agent To Provide To The Homeowners' Association Certain Financial Information Relating To The Funds Of The Association Before Every Regular Meeting And Upon Request Of The Association; To Provide The Board Of A Homeowners' Association To Conduct Certain Periodic Financial Reviews; To Require Homeowners' Associations To Maintain Fidelity Bond Coverage For Its Directors And Officers; To Provide That If The Association Uses A Managing Agent Or Management Company, The Association's Fidelity Bond Coverage Shall Additionally Include Dishonest Acts By That Person Or Entity And Its Employees; To Provide That The Bond Requirement Shall Not Apply If A Majority Of The Members Of The Association Vote Not To Have It; And For Related Purposes.
AI Summary
This bill regulates the management of homeowners' association (HOA) funds by managing agents. It requires managing agents to deposit HOA funds in trust accounts in Mississippi banks insured by the Federal Deposit Insurance Corporation (FDIC). It prohibits commingling of HOA funds with the managing agent's own funds and mandates the separation of any commingled funds by September 1, 2020. The bill also requires the managing agent to provide financial information to the HOA before every regular meeting and upon request. Furthermore, it imposes financial review requirements on the HOA board and mandates fidelity bond coverage for the HOA's directors, officers, and employees, including the managing agent if one is used.
Committee Categories
Business and Industry, Justice
Sponsors (1)
Last Action
Died In Committee (on 06/09/2020)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Loading...