Civil Code Finances & Reserves
Reserve Litigation Funding Notice
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 §5520
(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.
(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.