                                 CODE OF VIRGINIA

BOND TO BE POSTED BY DECLARANT (§ 55.1-1968)

A. The declarant of a condominium containing units that are required by this
chapter to be registered with the Common Interest Community Board shall post a
bond in favor of the unit owners&#8217; association with good and sufficient
surety, in a sum equal to $1,000 per unit, except that such sum shall not be
less than $10,000, nor more than $100,000. Such bond shall be filed with the
Common Interest Community Board and shall be maintained for so long as the
declarant owns more than 10 percent of the units in the condominium or, if the
declarant owns less than 10 percent of the units in the condominium, until the
declarant is current in the payment of assessments. However, the Board shall
return a bond where the declarant owns one unit in a condominium containing less
than 10 units, provided that such declarant is current in the payment of
assessments.

B. No bond shall be accepted for filing unless it is with a surety company
authorized to do business in the Commonwealth or by such other surety as is
satisfactory to the Board, and such bond shall be conditioned upon the payment
of all assessments levied against condominium units owned by the declarant. The
Board may accept a letter of credit in lieu of the bond contemplated by this
section.
			The Board may promulgate reasonable regulations that govern the return of
bonds submitted in accordance with this section.

HISTORY: 1977, c. 428, § 55-79.84:1; 1981, c. 480; 1984, c. 601; 1985, c. 107;
1988, c. 15; 1993, cc. 667, 900; 2008, cc. 851, 871; 2019, c. 712.