§514B-103  Association; registration.  (a) 
Each project or association having more than five units shall:



(1)  Secure and
maintain a fidelity bond in an amount for the coverage and terms as required by
section 514B‑143(a)(3).  An association shall act promptly and diligently
to recover from the fidelity bond required by this section.  An association
that is unable to obtain a fidelity bond may seek approval for an exemption, a
deductible, or a bond alternative from the commission.  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 other additional information set forth
by the commission.  The registration shall be for a biennial period with
termination on June 30 of each 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 other additional
information set forth by the commission.  Any project or association that has
not met the submission requirements by the deadline date shall be considered a
new applicant for registration and be subject to initial registration
requirements.  Any new project or association shall register within thirty days
of the association's first meeting.  If the association has not held its first
meeting and it is at least one year after the recordation of the purchase of
the first unit in the project, the developer or developer's affiliate or the
managing agent shall register on behalf of the association and shall comply
with this section, except for the fidelity bond requirement for associations
required by section [514B-143(a)(3)]. 
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's 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 where the officer can be contacted
directly;



(3)  Pay a
nonrefundable application fee and, upon approval, an initial registration fee,
a reregistration fee upon reregistration and the condominium education trust
fund fee, as provided in 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 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
promptly in writing to the commission any changes to the information contained on
the registration or reregistration application or any other documents required
by the commission.  Failure to do so may result in termination of registration
and subject the project or the association to initial registration
requirements.



(b)  The
commission may reject or terminate any registration submitted by a project or
an association that fails to comply with this section.  Any association 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 to
register, or rejection or termination of its registration, shall not impair the
validity of any contract or act of the association nor prevent the association
from defending any action or proceeding in any court in this State. [L 2004, c
164, pt of §2; am L 2007, c 244, §6]



 



Note



 



  L 2007, c 244, §9
provides:



  "SECTION 9.  Where
an association is unable to obtain the required fidelity bond of section
514B-103, the real estate commission's current fidelity bond exemption policies
shall be used until such time as the real estate commission adopts rules."