Section 5520 - Using Reserve Funds for Litigation

(a) When the decision is made to use reserve funds or to temporarily transfer moneys from the reserve fund to pay for litigation pursuant to subdivision (b) of Section 5510, the association shall provide general notice pursuant to Section 4045 of that decision, and of the availability of an accounting of those expenses.

(b) Unless the governing documents impose more stringent standards, the association shall make an accounting of expenses related to the litigation on at least a quarterly basis. The accounting shall be made available for inspection by members of the association at the association's office.

Section 1365.5 - Directors' Duty of Review; Reserve Funds; Periodic Visual Inspection

(d)    When the decision is made to use reserve funds or to temporarily transfer moneys from the reserve fund to pay for litigation, the association shall notify the members of the association of that decision in the next available mailing to all members pursuant to Section 5016 of the Corporations Code, and of the availability of an accounting of those expenses.  Unless the governing documents impose more stringent standards, the association shall make an accounting of expenses related to the litigation on at least a quarterly basis.  The accounting shall be made available for inspection by members of the association at the association’s office.

Changes

5520.1365.5
(d) (a) When the decision is made to use reserve funds or to temporarily transfer moneys from the reserve fund to pay for litigation pursuant to subdivision (b) of Section 5510, the association shall notify the members of the association of that decision in the next available mailing to all membersprovide general notice pursuant to Section 50164045 of the Corporations Codethat decision, and of the availability of an accounting of those expenses.
(b)  Unless the governing documents impose more stringent standards, the association shall make an accounting of expenses related to the litigation on at least a quarterly basis.  The accounting shall be made available for inspection by members of the association at the association’s office.