JohnK22 (Delaware)
Posts: 1
Posts: 1
Posted:
Should the treasurer of an HOA be bonded? What does DUCIOA require.
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Bond Requirements for treasurer
Started by JohnK22 • 3 replies • 1759 views
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TimB4 (Tennessee)
Posts: 21,061
Posts: 21,061
Posted:
If your Treasurer is not a Director or employee of the Association, then yes.
If your Treasurer is a Director or employee of the Association then the Associations Crime Policy would cover (act as the bond).
Taking a quick look at the DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT I did not see any requirement.
According to Delaware GENERAL CORPORATION LAW Subchapter IV. Directors and Officers, it's the corporations option to require fidelity bonds or not:
§ 142: (c) The corporation may secure the fidelity of any or all of its officers or agents by bond or otherwise.
Therefore, it appears that the answer you seek about any requirement for a fidelity bond would be found within your governing documents. It may be in the CC&Rs or Articles of Incorporation but would most likely be found within your Bylaws.
Hope this helps,
Tim
If your Treasurer is a Director or employee of the Association then the Associations Crime Policy would cover (act as the bond).
Taking a quick look at the DELAWARE UNIFORM COMMON INTEREST OWNERSHIP ACT I did not see any requirement.
According to Delaware GENERAL CORPORATION LAW Subchapter IV. Directors and Officers, it's the corporations option to require fidelity bonds or not:
§ 142: (c) The corporation may secure the fidelity of any or all of its officers or agents by bond or otherwise.
Therefore, it appears that the answer you seek about any requirement for a fidelity bond would be found within your governing documents. It may be in the CC&Rs or Articles of Incorporation but would most likely be found within your Bylaws.
Hope this helps,
Tim
BruceF1 (Connecticut)
Posts: 2,535
Posts: 2,535
Posted:
Quote:
Posted By JohnK22 on 11/14/2013 5:39 AM
Should the treasurer of an HOA be bonded? What does DUCIOA require.
Should the treasurer of an HOA be bonded? What does DUCIOA require.
The DUCIOA is based on the UCIOA which has been adopted by a small (about 6 or 7) sates, including Connecticut. Connecticut's CIOA does not require bonding, so I suspect the DUCIOA doesn't either.
However, our documents DO require that any person who handles money for the association be bonded for at least the maximum amount of the funds in that person's control at any one time.
GlenL (Ohio)
Posts: 5,491
Posts: 5,491
Posted:
Quote:
Posted By BruceF1 on 11/18/2013 6:45 AM
However, our documents DO require that any person who handles money for the association be bonded for at least the maximum amount of the funds in that person's control at any one time.
However, our documents DO require that any person who handles money for the association be bonded for at least the maximum amount of the funds in that person's control at any one time.
Our CC&R's require the same thing and require the MC if they handle funds to provide a bond paid for by the MC and requires 10 day notice to the HOA before it can be modified or terminated.
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