55-79.84:1 - Bond to be posted by declarant
§ 55-79.84:1. Bond to be posted by declarant.
A. The declarant of a condominium containing units which are required by thischapter to be registered with the Common Interest Community Board shall posta bond in favor of the unit owners' association with good and sufficientsurety, in a sum equal to $1,000 per unit, except that such sum shall not beless than $10,000, nor more than $100,000. Such bond shall be filed with theCommon Interest Community Board and shall be maintained for so long as thedeclarant owns more than 10 percent of the units in the condominium or, ifthe declarant owns less than 10 percent of the units in the condominium,until the declarant is current in the payment of assessments. However, theBoard shall return a bond where the declarant owns one unit in a condominiumcontaining less than 10 units, provided such declarant is current in thepayment of assessments.
B. No bond shall be accepted for filing unless it is with a surety companyauthorized to do business in the Commonwealth, or by such other surety as issatisfactory to the Board and such bond shall be conditioned upon the paymentof all assessments levied against condominium units owned by the declarant.The Board may accept a letter of credit in lieu of the bond contemplated bythis section.
The Board may promulgate reasonable regulations which govern the return ofbonds submitted in accordance with this section.
(1977, c. 428; 1981, c. 480; 1984, c. 601; 1985, c. 107; 1988, c. 15; 1993,cc. 667, 900; 2008, cc. 851, 871.)