Source: https://govt.westlaw.com/mdc/Document/NC45850D0136E11E4A6A3F8AFAAE86807?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)
Timestamp: 2017-09-21 10:25:22
Document Index: 148266149

Matched Legal Cases: ['§ 5', '§ 5', '§ 5', '§ 5', '§ 5', '§ 1', '§ 1', '§ 1', '§ 1', '§ 5', '§ 1', '§ 5', '§ 5']

§ 5-6B-27. Fidelity insurance requirements
MD Code, Corporations and Associations, § 5-6B-27
(b) This section does not apply to a cooperative housing corporation:
(1) That has four or fewer members; and
(2) For which 3 months' worth of gross common charges is less than $2,500.
(c)(1) The board of directors or other governing body of a cooperative housing corporation shall purchase fidelity insurance not later than the time of the first sale of a cooperative interest with respect to a unit to a person other than the developer and shall keep fidelity insurance in place for each year thereafter.
(2) The fidelity insurance required under paragraph (1) of this subsection shall provide for the indemnification of the cooperative housing corporation against loss resulting from acts or omissions arising from fraud, dishonesty, or criminal acts by:
(i) Any officer, director, managing agent, or other agent or employee charged with the operation or maintenance of the cooperative housing corporation who controls or disburses funds; and
(ii) Any management company employing a management agent or other employee charged with the operation or maintenance of the cooperative housing corporation who controls or disburses funds.
(d) A copy of the fidelity insurance policy or fidelity bond shall be included in the books and records kept and made available by or on behalf of the cooperative housing corporation under § 5-6B-26 of this subtitle.
(i) 3 months' worth of gross common charges and the total amount held in all investment accounts at the time the fidelity insurance is issued; or
(f) If a member believes that the board of directors or other governing body of a cooperative housing corporation has failed to comply with the requirements of this section, the aggrieved member may submit the dispute to the Division of Consumer Protection of the Office of the Attorney General under § 5-6B-12 of this subtitle.
Added as Corporations and Associations § 5-6B-18.6 by Acts 2009, c. 77, § 1, eff. Oct. 1, 2009; Acts 2009, c. 78, § 1, eff. Oct. 1, 2009. Amended by Acts 2010, c. 615, § 1, eff. Oct. 1, 2010; Acts 2010, c. 616, § 1, eff. Oct. 1, 2010. Renumbered as Corporations and Associations § 5-6B-27 and amended by Acts 2014, c. 567, §§ 1, 2, eff. Oct. 1, 2014.
MD Code, Corporations and Associations, § 5-6B-27, MD CORP & ASSNS § 5-6B-27