Tennessee SB2326 mandates homeowners' associations to maintain fidelity bonds against losses from theft or dishonesty by officers or employees.
Tennessee SB2326 amends Tennessee Code 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 coverage of $10,000. The board of directors or managing agent can procure this bond on behalf of the association. This act takes effect July 1, 2026.
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