From Les Sparks:
The answer to your question lies in a different Handbook – 4232.1. This is now the ONLY handbook for nursing home projects. To answer your question I refer you to Section II, chapter 14 of that Handbook,
Please let me know if there is anything else.
E. Fidelity Bond/Crime Insurance
What’s Required Fidelity Bond, Employee Dishonesty coverage or Crime Insurance. This insurance reimburses the insured for losses resulting from dishonest acts of any employee, officer or board member.
The policy must cover:
• All principals of the borrower, management entity, if applicable, the operating entity, where applicable and
• All persons who participate directly or indirectly in the management and maintenance of the project and its assets, accounts, and records.
Coverage shall be through one or more bonds, and one bond may cover more than one project, including projects whose mortgages are not insured or held by HUD. The agent’s principals and supervisory and front-line staff will be covered under the same bond.
When Does it Apply? All properties.
Les