MS HB636

Requires managing agents to deposit homeowners' association funds into separate trust accounts in Mississippi banks insured by the Federal Deposit Insurance Corporation, and prohibits comingling these funds with the managing agent's own money or funds of others.

Mandates that transfers over $10,000 from an association's combined reserve and operating accounts require prior written board approval.

Requires managing agents to provide associations with financial information before every regular meeting and upon request, including account reconciliations, budget comparisons, account statements, receipts and disbursements, and check registers.

Requires homeowners' associations to maintain fidelity bond coverage for directors and officers in an amount equal to or greater than the combined reserves and highest total assessments from the previous year, and to include coverage for dishonest acts by managing agents and their employees.

Requires comingled funds existing on July 1, 2020 to be separated into individual accounts by September 1, 2020, and allows associations to opt out of fidelity bond requirements by majority member vote.