State Codes and Statutes
Statutes > Virginia > Title-55 > Chapter-26 > 55-514-2§ 55-514.2. Deposit of funds; fidelity bond.
A. All funds deposited with a managing agent shall be handled in a fiduciarycapacity and shall be kept in a fiduciary trust account in a federallyinsured financial institution separate from other assets of the managingagent. The funds shall be the property of the association and shall besegregated for each account in the records of the managing agent in a mannerthat permits the funds to be identified on an individual association basis.
B. Any association collecting assessments for common expenses shall obtainand maintain a blanket fidelity bond or employee dishonesty insurance policyinsuring the association against losses resulting from theft or dishonestycommitted by the officers, directors, or persons employed by the association,or committed by any managing agent or employees of the managing agent. Suchbond or insurance policy shall provide coverage in an amount equal to thelesser of $1 million or the amount of the reserve balances of the associationplus one-fourth of the aggregate annual assessment income of suchassociation. The minimum coverage amount shall be $10,000. The board ofdirectors or managing agent may obtain such bond or insurance on behalf ofthe association.
(2007, cc. 696, 712; 2008, cc. 851, 871.)
