§514A-95.1 
Association of apartment owners registration; fidelity bond.  (a)  Each condominium project or association of
apartment owners having more than five apartments shall:



(1)  Secure a fidelity bond in an amount equal to $500
multiplied by the number of apartments, to cover all officers, directors,
employees, and managing agents of the association of apartment owners who
handle, control, or have custody of the funds of the association of apartment
owners; provided that the amount of the fidelity bond required by this
paragraph shall not be less than $20,000 nor greater than $100,000.  The
fidelity bond shall protect the association of apartment owners against
fraudulent or dishonest acts by persons, including any managing agent, who have
access to the funds of the association of apartment owners.  An association of
apartment owners shall act promptly and diligently to recover from the fidelity
bond required by this section.  An association of apartment owners that is
unable to obtain a fidelity bond may seek approval for an exemption or a bond
alternative from the commission.  The commission shall adopt rules establishing
the conditions and terms for which it may grant an exemption or a bond
alternative, or permit deductibles.  Failure to obtain or maintain a fidelity
bond in compliance with this chapter and the rules adopted pursuant thereto,
including failure to provide current evidence of the fidelity bond coverage in
a timely manner to the commission, shall result in non-registration or the
automatic termination of the registration, unless an approved exemption or a
bond alternative is presently maintained.  Current evidence of a fidelity bond
includes a certification statement from an insurance company registered with
the department of commerce and consumer affairs certifying that the bond is in
effect and meets the requirement of this section and the rules adopted by the
commission;



(2)  Register with the commission through approval of
a completed registration application, payment of fees, and submission of any
additional information set forth by the commission.  Beginning June 30, 1997,
the registration shall be for a biennial period with termination on June 30 of
an odd-numbered year.  The commission shall prescribe a deadline date prior to
the termination date for the submission of a completed reregistration
application, payment of fees, and any additional information set forth by the
commission.  Any condominium project or association of apartment owners that
has not met the submission requirements by the deadline date shall be
considered a new applicant for registration and subject to initial registration
requirements.  Any new condominium project or association of apartment owners
shall register within thirty days of the association of apartment owners' first
meeting.  If the association of apartment owners has not held its first meeting
within one year after the recordation of the purchase of the first apartment in
the condominium project, the developer or developer's affiliate or the managing
agent shall register on behalf of the unorganized association of apartment
owners and shall comply with this section, except the fidelity bond requirement
for association of apartment owners.  The public information required to be
submitted on any completed application form shall include but not be limited to
evidence of and information on fidelity bond coverage, names and positions of
the officers of the association, the name of the association of apartment
owners' managing agent, if any, the street and the postal address of the
condominium, and the name and current mailing address of a designated officer
of the association of apartment owners where the officer can be contacted
directly;



(3)  Pay a nonrefundable application fee and, upon
approval, an initial registration fee or a reregistration fee, and the
condominium education trust fund fee pursuant to section 514B-72 and rules
adopted by the director of commerce and consumer affairs pursuant to chapter
91;



(4)  Register or reregister and pay the required fees
by the due date.  Failure to register or reregister or to pay the required fees
by the due date shall result in the assessment of a penalty equal to the amount
of the registration or reregistration fee; and



(5)  Report immediately in writing to the commission
any changes to the information contained on the registration or reregistration
application, the evidence of the fidelity bond, or any other documents set
forth by the commission.  Failure to do so may result in termination of
registration and subject the condominium project or the association of
apartment owners to initial registration requirements.



(b)  The
commission may reject or terminate any registration submitted by a condominium
project or an association of apartment owners that fails to comply with this
section.  Any association of apartment owners that fails to register as
required by this section or whose registration is rejected or terminated shall
not have standing to maintain any action or proceeding in the courts of this
State until it registers.  The failure of an association of apartment owners to
register, or rejection or termination of its registration, shall not impair the
validity of any contract or act of the association of apartment owners nor
prevent the association of apartment owners from defending any action or
proceeding in any court in this State. [L 2007, c 244, pt of §2; am L 2009, c
129, §8]