{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/55.1-1983.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/55.1-1983.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/55.1-1983.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/55.1-1983.html"}],"law_id":59449,"edition_id":1,"section_id":59449,"structure_id":15581,"section_number":"55.1-1983","catch_line":"Escrow of deposits","history":"1974, c. 416, \u00a7 55-79.95; 1977, c. 91; 2007, c. 445; 2008, cc. 851, 871; 2019, c. 712.","full_text":"A\n\nAny deposit made in regard to any disposition of a unit, including a nonbinding reservation agreement, shall be held in escrow until delivered at settlement. Such escrow funds shall be deposited in a separate account designated for this purpose that is federally insured and located in the Commonwealth, except where such deposits are being held by a real estate broker or attorney licensed under the laws of the Commonwealth, in which case such funds may be placed in that broker’s or attorney’s regular escrow account and need not be placed in a separate designated account. Such escrow funds shall not be subject to attachment by the creditors of either the purchaser or the declarant.B\n\nIn lieu of escrowing deposits as provided in subsection A, the declarant of a condominium consisting of more than 50 units may:1\n\nObtain and maintain a corporate surety bond issued by a surety authorized to do business in the Commonwealth, in the form and amount set forth below; or2\n\nObtain and maintain an irrevocable letter of credit issued by a financial institution whose accounts are insured by the FDIC, in the form and amount set forth below.\n\t\t\t\tThe surety bond or letter of credit shall be maintained until (i) the granting of a deed to the unit, (ii) the purchaser’s default under a purchase contract for the unit entitling the declarant to retain the deposit, or (iii) the refund of the deposit to the purchaser, whichever occurs first.C\n\nThe surety bond shall be payable to the Commonwealth for the use and benefit of every person protected under the provisions of this chapter. The declarant shall file the bond with the Common Interest Community Board. The surety bond may be either in the form of an individual bond for each deposit accepted by the declarant or, if the total amount of the deposits accepted by the declarant under this chapter exceeds $10,000, it may be in the form of a blanket bond. If the bond is a blanket bond, the amount shall be as follows. If the amount of such deposits is:1\n\n$75,000 or less, the blanket bond shall be $75,000;2\n\nMore than $75,000 but less than $200,000, the blanket bond shall be $200,000;3\n\n$200,000 or more but less than $500,000, the blanket bond shall be $500,000;4\n\n$500,000 or more but less than $1 million, the blanket bond shall be $1 million; and5\n\n$1 million or more, the blanket bond shall be 100 percent of the amount of such deposits.D\n\nThe letter of credit shall be payable to the Commonwealth for use and benefit of every person protected under this chapter. The declarant shall file the letter of credit with the Common Interest Community Board. The letter of credit may be either in the form of an individual letter of credit for each deposit accepted by the declarant or, if the total amount of the deposits accepted by the declarant under this chapter exceeds $10,000, it may be in the form of a blanket letter of credit. If the letter of credit is a blanket letter of credit, the amount shall be as follows. If the amount of such deposits is:1\n\n$75,000 or less, the blanket letter of credit shall be $75,000;2\n\nMore than $75,000 but less than $200,000, the blanket letter of credit shall be $200,000;3\n\n$200,000 or more but less than $500,000, the blanket letter of credit shall be $500,000;4\n\n$500,000 or more but less than $1 million, the blanket letter of credit shall be $1 million; and5\n\n$1 million or more, the blanket letter of credit shall be 100 percent of the amount of such deposits.\n\t\t\t\tFor the purposes of determining the amount of any blanket letter of credit that a declarant maintains in any calendar year, the total amount of deposits considered held by the declarant shall be determined as of May 31 in each calendar year and the amount of the letter of credit shall be in accordance with the amount of deposits held as of May 31.","order_by":null,"text":{"0":{"id":217851,"text":"Any deposit made in regard to any disposition of a unit, including a nonbinding reservation agreement, shall be held in escrow until delivered at settlement. Such escrow funds shall be deposited in a separate account designated for this purpose that is federally insured and located in the Commonwealth, except where such deposits are being held by a real estate broker or attorney licensed under the laws of the Commonwealth, in which case such funds may be placed in that broker’s or attorney’s regular escrow account and need not be placed in a separate designated account. Such escrow funds shall not be subject to attachment by the creditors of either the purchaser or the declarant.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":217852,"text":"In lieu of escrowing deposits as provided in subsection A, the declarant of a condominium consisting of more than 50 units may:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":217853,"text":"Obtain and maintain a corporate surety bond issued by a surety authorized to do business in the Commonwealth, in the form and amount set forth below; or","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":217854,"text":"Obtain and maintain an irrevocable letter of credit issued by a financial institution whose accounts are insured by the FDIC, in the form and amount set forth below.\n\t\t\t\tThe surety bond or letter of credit shall be maintained until (i) the granting of a deed to the unit, (ii) the purchaser’s default under a purchase contract for the unit entitling the declarant to retain the deposit, or (iii) the refund of the deposit to the purchaser, whichever occurs first.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"4":{"id":217855,"text":"The surety bond shall be payable to the Commonwealth for the use and benefit of every person protected under the provisions of this chapter. The declarant shall file the bond with the Common Interest Community Board. The surety bond may be either in the form of an individual bond for each deposit accepted by the declarant or, if the total amount of the deposits accepted by the declarant under this chapter exceeds $10,000, it may be in the form of a blanket bond. If the bond is a blanket bond, the amount shall be as follows. If the amount of such deposits is:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"C1"},"5":{"id":217856,"text":"$75,000 or less, the blanket bond shall be $75,000;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"6":{"id":217857,"text":"More than $75,000 but less than $200,000, the blanket bond shall be $200,000;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"7":{"id":217858,"text":"$200,000 or more but less than $500,000, the blanket bond shall be $500,000;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"8":{"id":217859,"text":"$500,000 or more but less than $1 million, the blanket bond shall be $1 million; and","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"9":{"id":217860,"text":"$1 million or more, the blanket bond shall be 100 percent of the amount of such deposits.","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"D"},"10":{"id":217861,"text":"The letter of credit shall be payable to the Commonwealth for use and benefit of every person protected under this chapter. The declarant shall file the letter of credit with the Common Interest Community Board. The letter of credit may be either in the form of an individual letter of credit for each deposit accepted by the declarant or, if the total amount of the deposits accepted by the declarant under this chapter exceeds $10,000, it may be in the form of a blanket letter of credit. If the letter of credit is a blanket letter of credit, the amount shall be as follows. If the amount of such deposits is:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C5","next_prefix":"D1"},"11":{"id":217862,"text":"$75,000 or less, the blanket letter of credit shall be $75,000;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"12":{"id":217863,"text":"More than $75,000 but less than $200,000, the blanket letter of credit shall be $200,000;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"13":{"id":217864,"text":"$200,000 or more but less than $500,000, the blanket letter of credit shall be $500,000;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"14":{"id":217865,"text":"$500,000 or more but less than $1 million, the blanket letter of credit shall be $1 million; and","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"15":{"id":217866,"text":"$1 million or more, the blanket letter of credit shall be 100 percent of the amount of such deposits.\n\t\t\t\tFor the purposes of determining the amount of any blanket letter of credit that a declarant maintains in any calendar year, the total amount of deposits considered held by the declarant shall be determined as of May 31 in each calendar year and the amount of the letter of credit shall be in accordance with the amount of deposits held as of May 31.","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4"}},"ancestry":[{"id":15581,"edition_id":1,"name":"Administration of Chapter; Sale, Etc., of Condominium Units","identifier":"4","label":"article","depth":4,"order_by":1,"parent_id":13018,"metadata":{},"date_created":"2026-06-26 03:56:32","date_modified":"2026-06-26 03:56:32","permalink":{"id":246927,"object_type":"structure","relational_id":15581,"identifier":"4","token":"55.1\/IV\/19\/4","url":"\/55.1\/IV\/19\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13018,"edition_id":1,"name":"Virginia Condominium Act","identifier":"19","label":"chapter","depth":3,"order_by":1,"parent_id":12914,"metadata":{},"date_created":"2026-06-26 03:44:09","date_modified":"2026-06-26 03:44:09","permalink":{"id":246623,"object_type":"structure","relational_id":13018,"identifier":"19","token":"55.1\/IV\/19","url":"\/55.1\/IV\/19\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12914,"edition_id":1,"name":"Common Interest Communities","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12707,"metadata":{},"date_created":"2026-06-26 03:44:01","date_modified":"2026-06-26 03:44:01","permalink":{"id":246473,"object_type":"structure","relational_id":12914,"identifier":"IV","token":"55.1\/IV","url":"\/55.1\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12707,"edition_id":1,"name":"Property and Conveyances","identifier":"55.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":244769,"object_type":"structure","relational_id":12707,"identifier":"55.1","token":"55.1","url":"\/55.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":68690,"structure_id":15581,"section_number":"55.1-1970","catch_line":"Common Interest Community Board","url":"\/55.1-1970\/","token":"55.1\/IV\/19\/4\/55.1-1970","metadata":false},{"id":59771,"structure_id":15581,"section_number":"55.1-1971","catch_line":"General powers and duties of the Common Interest Community Board","url":"\/55.1-1971\/","token":"55.1\/IV\/19\/4\/55.1-1971","metadata":{"court_decisions":""}},{"id":75490,"structure_id":15581,"section_number":"55.1-1972","catch_line":"Exemptions from certain provisions of article","url":"\/55.1-1972\/","token":"55.1\/IV\/19\/4\/55.1-1972","metadata":false},{"id":61023,"structure_id":15581,"section_number":"55.1-1973","catch_line":"Rental of units","url":"\/55.1-1973\/","token":"55.1\/IV\/19\/4\/55.1-1973","metadata":false},{"id":68890,"structure_id":15581,"section_number":"55.1-1974","catch_line":"Limitations on dispositions of units","url":"\/55.1-1974\/","token":"55.1\/IV\/19\/4\/55.1-1974","metadata":false},{"id":61758,"structure_id":15581,"section_number":"55.1-1975","catch_line":"Application for registration; fee","url":"\/55.1-1975\/","token":"55.1\/IV\/19\/4\/55.1-1975","metadata":false},{"id":85082,"structure_id":15581,"section_number":"55.1-1976","catch_line":"Public offering statement; condominium securities","url":"\/55.1-1976\/","token":"55.1\/IV\/19\/4\/55.1-1976","metadata":false},{"id":82046,"structure_id":15581,"section_number":"55.1-1977","catch_line":"Inquiry and examination","url":"\/55.1-1977\/","token":"55.1\/IV\/19\/4\/55.1-1977","metadata":false},{"id":75453,"structure_id":15581,"section_number":"55.1-1978","catch_line":"Notice of filing and registration","url":"\/55.1-1978\/","token":"55.1\/IV\/19\/4\/55.1-1978","metadata":false},{"id":65140,"structure_id":15581,"section_number":"55.1-1979","catch_line":"Annual report by declarant","url":"\/55.1-1979\/","token":"55.1\/IV\/19\/4\/55.1-1979","metadata":false},{"id":61172,"structure_id":15581,"section_number":"55.1-1980","catch_line":"Annual report by unit owners' association","url":"\/55.1-1980\/","token":"55.1\/IV\/19\/4\/55.1-1980","metadata":false},{"id":73657,"structure_id":15581,"section_number":"55.1-1981","catch_line":"Termination of registration","url":"\/55.1-1981\/","token":"55.1\/IV\/19\/4\/55.1-1981","metadata":false},{"id":64581,"structure_id":15581,"section_number":"55.1-1982","catch_line":"Conversion condominiums; special provisions","url":"\/55.1-1982\/","token":"55.1\/IV\/19\/4\/55.1-1982","metadata":false},{"id":59449,"structure_id":15581,"section_number":"55.1-1983","catch_line":"Escrow of deposits","url":"\/55.1-1983\/","token":"55.1\/IV\/19\/4\/55.1-1983","metadata":false},{"id":72592,"structure_id":15581,"section_number":"55.1-1984","catch_line":"Declarant to deliver declaration to purchaser","url":"\/55.1-1984\/","token":"55.1\/IV\/19\/4\/55.1-1984","metadata":false},{"id":66724,"structure_id":15581,"section_number":"55.1-1985","catch_line":"Investigations and proceedings","url":"\/55.1-1985\/","token":"55.1\/IV\/19\/4\/55.1-1985","metadata":false},{"id":63733,"structure_id":15581,"section_number":"55.1-1986","catch_line":"Cease and desist orders","url":"\/55.1-1986\/","token":"55.1\/IV\/19\/4\/55.1-1986","metadata":false},{"id":78872,"structure_id":15581,"section_number":"55.1-1987","catch_line":"Revocation of registration","url":"\/55.1-1987\/","token":"55.1\/IV\/19\/4\/55.1-1987","metadata":false},{"id":86244,"structure_id":15581,"section_number":"55.1-1988","catch_line":"Judicial review","url":"\/55.1-1988\/","token":"55.1\/IV\/19\/4\/55.1-1988","metadata":false},{"id":66151,"structure_id":15581,"section_number":"55.1-1989","catch_line":"Penalties","url":"\/55.1-1989\/","token":"55.1\/IV\/19\/4\/55.1-1989","metadata":false}],"previous_section":{"id":64581,"structure_id":15581,"section_number":"55.1-1982","catch_line":"Conversion condominiums; special provisions","url":"\/55.1-1982\/","token":"55.1\/IV\/19\/4\/55.1-1982","metadata":false},"next_section":{"id":72592,"structure_id":15581,"section_number":"55.1-1984","catch_line":"Declarant to deliver declaration to purchaser","url":"\/55.1-1984\/","token":"55.1\/IV\/19\/4\/55.1-1984","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/55.1-1983\/","history_text":"

This law was first created in 1974. The record of its establishment is cataloged in chapter 416 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1974 \u201cActs\u201d aren\u2019t available online. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1977, chapter 91; in 2007, chapter 445<\/a>; in 2008, chapters 851<\/a> and 871<\/a>; in 2019, chapter 712<\/a>.<\/p>","references":[{"id":75490,"section_number":"55.1-1972","catch_line":"Exemptions from certain provisions of article","order_by":null,"url":"\/55.1-1972\/"},{"id":66151,"section_number":"55.1-1989","catch_line":"Penalties","order_by":null,"url":"\/55.1-1989\/"}],"refers_to":false,"permalink":{"id":246981,"object_type":"law","relational_id":59449,"identifier":"55.1-1983","token":"55.1\/IV\/19\/4\/55.1-1983","url":"\/55.1-1983\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/55.1-1983\/","token":"55.1\/IV\/19\/4\/55.1-1983","dublin_core":{"Title":"Escrow of deposits","Type":"Text","Format":"text\/html","Identifier":"\u00a7 55.1-1983","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any deposit made in regard to any disposition<\/span> of a unit<\/span>, including a nonbinding reservation agreement<\/span>, shall be held in escrow until delivered at settlement<\/span>. Such escrow funds shall be deposited in a separate account designated for this purpose that is federally insured and located in the Commonwealth, except where such deposits are being held by a real estate broker or attorney licensed under the laws<\/span> of the Commonwealth, in which case such funds may be placed in that broker’s or attorney’s regular escrow account and need not be placed in a separate designated account. Such escrow funds shall not be subject to attachment<\/span> by the creditors<\/span> of either the purchaser<\/span> or the declarant<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In lieu of escrowing deposits as provided in subsection A, the declarant<\/span> of a condominium<\/span> consisting of more than 50 units<\/span> may: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Obtain and maintain a corporate surety<\/span> bond<\/span> issued by a surety<\/span> authorized to do business in the Commonwealth, in the form and amount set forth below; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Obtain and maintain an irrevocable letter of credit issued by a financial institution whose accounts are insured by the FDIC, in the form and amount set forth below.\n\t\t\t\tThe surety<\/span> bond<\/span> or letter of credit shall be maintained until (i) the granting of a deed to the unit<\/span>, (ii) the purchaser<\/span>’s default<\/span> under a purchase contract<\/span> for the unit<\/span> entitling the declarant<\/span> to retain the deposit, or (iii) the refund of the deposit to the purchaser<\/span>, whichever occurs first. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The surety<\/span> bond<\/span> shall be payable to the Commonwealth for the use and benefit of every person<\/span> protected under the provisions of this chapter. The declarant<\/span> shall file the bond<\/span> with the Common Interest Community Board. The surety<\/span> bond<\/span> may be either in the form of an individual bond<\/span> for each deposit accepted by the declarant<\/span> or, if the total amount of the deposits accepted by the declarant<\/span> under this chapter exceeds $10,000, it may be in the form of a blanket bond<\/span>. If the bond<\/span> is a blanket bond<\/span>, the amount shall be as follows. If the amount of such deposits is: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> $75,000 or less, the blanket bond<\/span> shall be $75,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> More than $75,000 but less than $200,000, the blanket bond<\/span> shall be $200,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> $200,000 or more but less than $500,000, the blanket bond<\/span> shall be $500,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> $500,000 or more but less than $1 million, the blanket bond<\/span> shall be $1 million; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> $1 million or more, the blanket bond<\/span> shall be 100 percent of the amount of such deposits. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The letter of credit shall be payable to the Commonwealth for use and benefit of every person<\/span> protected under this chapter. The declarant<\/span> shall file the letter of credit with the Common Interest Community Board. The letter of credit may be either in the form of an individual letter of credit for each deposit accepted by the declarant<\/span> or, if the total amount of the deposits accepted by the declarant<\/span> under this chapter exceeds $10,000, it may be in the form of a blanket letter of credit. If the letter of credit is a blanket letter of credit, the amount shall be as follows. If the amount of such deposits is: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> $75,000 or less, the blanket letter of credit shall be $75,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> More than $75,000 but less than $200,000, the blanket letter of credit shall be $200,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> $200,000 or more but less than $500,000, the blanket letter of credit shall be $500,000; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> $500,000 or more but less than $1 million, the blanket letter of credit shall be $1 million; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> $1 million or more, the blanket letter of credit shall be 100 percent of the amount of such deposits.\n\t\t\t\tFor the purposes of determining the amount of any blanket letter of credit that a declarant<\/span> maintains in any calendar year, the total amount of deposits considered held by the declarant<\/span> shall be determined as of May 31 in each calendar year and the amount of the letter of credit shall be in accordance with the amount of deposits held as of May 31. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nESCROW OF DEPOSITS (\u00a7 55.1-1983)\n\nA. Any deposit made in regard to any disposition of a unit, including a\nnonbinding reservation agreement, shall be held in escrow until delivered at\nsettlement. Such escrow funds shall be deposited in a separate account\ndesignated for this purpose that is federally insured and located in the\nCommonwealth, except where such deposits are being held by a real estate broker\nor attorney licensed under the laws of the Commonwealth, in which case such\nfunds may be placed in that broker’s or attorney’s regular escrow\naccount and need not be placed in a separate designated account. Such escrow\nfunds shall not be subject to attachment by the creditors of either the\npurchaser or the declarant.\n\nB. In lieu of escrowing deposits as provided in subsection A, the declarant of a\ncondominium consisting of more than 50 units may:\n\n 1. Obtain and maintain a corporate surety bond issued by a surety authorized\n to do business in the Commonwealth, in the form and amount set forth below; or\n\n 2. Obtain and maintain an irrevocable letter of credit issued by a financial\n institution whose accounts are insured by the FDIC, in the form and amount set\n forth below.\n \t\t\t\tThe surety bond or letter of credit shall be maintained until (i) the\n granting of a deed to the unit, (ii) the purchaser’s default under a\n purchase contract for the unit entitling the declarant to retain the deposit,\n or (iii) the refund of the deposit to the purchaser, whichever occurs first.\n\nC. The surety bond shall be payable to the Commonwealth for the use and benefit\nof every person protected under the provisions of this chapter. The declarant\nshall file the bond with the Common Interest Community Board. The surety bond\nmay be either in the form of an individual bond for each deposit accepted by the\ndeclarant or, if the total amount of the deposits accepted by the declarant\nunder this chapter exceeds $10,000, it may be in the form of a blanket bond. If\nthe bond is a blanket bond, the amount shall be as follows. If the amount of\nsuch deposits is:\n\n 1. $75,000 or less, the blanket bond shall be $75,000;\n\n 2. More than $75,000 but less than $200,000, the blanket bond shall be\n $200,000;\n\n 3. $200,000 or more but less than $500,000, the blanket bond shall be\n $500,000;\n\n 4. $500,000 or more but less than $1 million, the blanket bond shall be $1\n million; and\n\n 5. $1 million or more, the blanket bond shall be 100 percent of the amount of\n such deposits.\n\nD. The letter of credit shall be payable to the Commonwealth for use and benefit\nof every person protected under this chapter. The declarant shall file the\nletter of credit with the Common Interest Community Board. The letter of credit\nmay be either in the form of an individual letter of credit for each deposit\naccepted by the declarant or, if the total amount of the deposits accepted by\nthe declarant under this chapter exceeds $10,000, it may be in the form of a\nblanket letter of credit. If the letter of credit is a blanket letter of credit,\nthe amount shall be as follows. If the amount of such deposits is:\n\n 1. $75,000 or less, the blanket letter of credit shall be $75,000;\n\n 2. More than $75,000 but less than $200,000, the blanket letter of credit\n shall be $200,000;\n\n 3. $200,000 or more but less than $500,000, the blanket letter of credit shall\n be $500,000;\n\n 4. $500,000 or more but less than $1 million, the blanket letter of credit\n shall be $1 million; and\n\n 5. $1 million or more, the blanket letter of credit shall be 100 percent of\n the amount of such deposits.\n \t\t\t\tFor the purposes of determining the amount of any blanket letter of credit\n that a declarant maintains in any calendar year, the total amount of deposits\n considered held by the declarant shall be determined as of May 31 in each\n calendar year and the amount of the letter of credit shall be in accordance\n with the amount of deposits held as of May 31.\n\nHISTORY: 1974, c. 416, \u00a7 55-79.95; 1977, c. 91; 2007, c. 445; 2008, cc. 851,\n871; 2019, c. 712.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}