Boards and Bonds. If the CC&Rs, Bylaws, Articles of Incorporation or any other governing document require a bond, then you must have one. So why a bond? The Board should ensure the property management is bonded up to the amount of funds handled. All Board members and corporation employees should also be bonded because director's and officer's insurance does not cover fraud. There is no legal requirement in California requiring a bond. The Bluebook advises large associations to buy this type of insurance. Associations should protect their funds with fidelity bond coverage. The fidelity bond coverage protects the associations assets. There have been instances where Board members and managers absconded with the Associations funds.  See pdf attachment at bottom of page - Order of Warrant FHA - Want to know if FHA will lend to your Condominium complex? Go here and find out. Cameo is approved  |