Section 4177 - Reserve Accounts

"Reserve accounts" means both of the following:

(a) Moneys that the board has identified for use to defray the future repair or replacement of, or additions to, those major components that the association is obligated to maintain.

(b) The funds received, and not yet expended or disposed of, from either a compensatory damage a ward or settlement to an association from any person for injuries to property, real or personal, arising from any construction or design defects. These funds shall be separately itemized from funds described in subdivision (a).

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

(f)    As used in this section, "reserve accounts" means both of the following:
(1)    Moneys that the association’s board of directors has identified for use to defray the future repair or replacement of, or additions to, those major components that the association is obligated to maintain.
(2)    The funds received, and not yet expended or disposed of, from either a compensatory damage award or settlement to an association from any person or entity for injuries to property, real or personal, arising from any construction or design defects.  These funds shall be separately itemized from funds described in paragraph (1).

Changes

4177.1365.5    (f) As used in this section, "rReserve accounts" means both of the following:

(a) (1)    Moneys that the association’s board of directors has identified for use to defray the future repair or replacement of, or additions to, those major components that the association is obligated to maintain.
(b) (2)  The funds received, and not yet expended or disposed of, from either a compensatory damage award or settlement to an association from any person or entity for injuries to property, real or personal, arising from any construction or design defects.  These funds shall be separately itemized from funds described in paragraphsubdivision (1)(a).