The purpose of this coverage is to indemnify the association for the loss of money, securities or any property because of acts of fraud, dishonesty, forgery, theft, larceny, embezzlement, wrongful abstraction, willful misapplication, misappropriation or any criminal act on the part of directors, officers, committee members, association employees, board members, volunteers, or property manager employees.
In Georgia, the “Georgia Real Estate Law (Fidelity Bond Required Section)” states that any community association management service who collects, maintains, controls, has access to, or disburses community association funds in excess of $60,000 shall be covered at all times under a fidelity bond.
The amount of the bond shall at no time be less than an amount equal to the sum of three months assessments due from all the members of the association or associations managed by the broker plus the amount of reserve funds that the community association or associations require the broker to maintain.
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