By Dylan Grimes
2018 Legislative Update
developments and there were some proposed laws that were not passed. Te new laws include:
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ASSEMBLY BILL 2912: Tis new law is intended to provide financial protection to associations by amending Civil Code Sections 5380 and 5500 and by adding Sections 5501, 5502 and 5806. It becomes effective on January 1, 2019. Tis law requires that an association must have board approval in order to make an electronic transfer of funds greater than $10,000 or 5% of the association’s total combined reserve and operating account deposits, whichever is lower, from the association’s operating or reserve accounts. Also, in addition to the required quarterly review of an
s we come to the end of 2018, there were just a couple new laws that were passed that will affect common interest
association’s financial statements by the board, a monthly review of the association’s financial statements will also be required. Tis monthly review, however, will not require a monthly board meeting.
Instead, the monthly
review may be met “when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member” reviews the financial information independent of a board meeting. Further, an association must also maintain fidelity bond coverage for its directors, officers, and employees. Te fidelity bond must be in an amount that is equal to or more than the combined amount of the reserves of the association and total assessments for three months.
SENATE BILL 261: Tis new law changes technical requirements that
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