Investing Association Funds
While the Condominium Act does not restrict the types of investments that associations may use to generate a return on it funds, there are a few things that board members should keep in mind about investing association funds. First, board members have a fiduciary duty to the membership; such relationship requires prudent investment decisions that carefully consider risk and return. Next, board members should consider the deposit limits that are insured by the federal government
Self-Study / Self-Paced.
The risk to association funds can be limited by spreading the bank accounts out so that no one account has excess exposure. Associations should also consider using separate accounts for operating and reserve investments. There are several reasons that this may be a good idea. Since most associations collect monthly assessments, the operating cash should be highly liquid (readily available) and is usually kept at a level necessary to cover monthly expenses, plus a cushion.