Civil Code Finances & Reserves
Reserve Withdrawal Requirements
Chapter 7 · Finances · Use of Reserve Funds
Text current as of 2026-07-07 · Last amended by AB 805, eff. 2014-01-01
The code says CIV §5510
(a) The signatures of at least two persons, who shall be directors, or one officer who is not a director and one who is a director, shall be required for the withdrawal of moneys from the association’s reserve accounts.
(b) The board shall not expend funds designated as reserve funds for any purpose other than the repair, restoration, replacement, or maintenance of, or litigation involving the
repair, restoration, replacement, or maintenance of, major components that the association is obligated to repair, restore, replace, or maintain and for which the reserve fund was established.
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
How courts have read this
No case law is mapped to this section yet. As decisions are added, they’ll appear here.