NC H793

Requires condominium and planned community associations with annual assessments of $100,000 or more to obtain and maintain fidelity bonds covering theft or dishonesty by executive board members and employees, with coverage equal to annual operating budget but not exceeding $1,000,000.

Mandates that any management agent or company hired by an association must maintain a fidelity bond covering up to $2,000,000 and requires 30 days' notice (10 days for nonpayment) before bond cancellation or substantial modification.

Requires associations with annual revenues or expenditures of $250,000 or more to obtain annual independent financial audits conducted by certified public accountants, or if requested by majority board vote or unit owner vote.

Requires associations with annual revenues or expenditures of $150,000 to $249,999 to obtain annual independent financial reviews (rather than full audits) conducted by certified public accountants.

Effective October 1, 2013, with provisions applying to both condominium associations under Chapter 47C and planned community associations under Chapter 47F.