Bill

Bill > SB2326


TN SB2326

TN SB2326
AN ACT to amend Tennessee Code Annotated, Title 66, relative to property owners' associations' responsibility to maintain fidelity bonds.


summary

Introduced
02/02/2026
In Committee
Crossed Over
Passed
Dead

Introduced Session

114th General Assembly

Bill Summary

As introduced, 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.

AI Summary

This bill requires any homeowners' association (HOA), which is an organization of property owners that manages or regulates a residential subdivision, that collects money for common expenses to obtain and maintain a blanket fidelity bond. This bond is essentially insurance that protects the HOA against financial losses due to theft or dishonesty by its officers, directors, employees, or the employees of any company hired to manage the HOA. The required coverage amount for this bond must be at least the total amount in the HOA's reserve funds plus one-quarter of the HOA's total annual income from assessments, with a minimum coverage of $10,000. The HOA's board of directors or its managing agent can purchase this bond on behalf of the HOA.

Sponsors (1)

Last Action

Refer to Senate Delayed Bills Committee (on 02/02/2026)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...