HB2338

Tennessee HB2338 mandates homeowners' associations to maintain fidelity bonds against losses from theft or dishonesty by officers or employees.

HB2338 amends Tennessee law to require homeowners' associations to obtain and maintain a blanket fidelity bond. This bond insures the association against losses from theft or dishonesty by officers, directors, or employees. The bond amount must equal the association's reserve balances plus one-fourth of its annual assessment income, with a minimum of ten thousand dollars. The board of directors or managing agent can secure this bond or insurance on behalf of the association. The act takes effect July 1, 2026.