Resolution to Borrow
Adams Stirling PLC
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RESOLUTION TO BORROW FROM RESERVES

Following is a sample resolution. Minutes can, but need not, contain formal wording for this resolutions. As long as a motion contains the essential information, it can dispense with the "WHEREAS" and "BE IT RESOLVED" formalities.

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WHEREAS, Section 5515 of the California Civil Code permits the Board to transfer money from the reserve fund to the Association's general operating funds to meet short-term cash flow requirements or for other expenses; and

WHEREAS, there is currently a shortage in the Association's cash flow impairing the Association's ability to meet its current operating expenses due to additional expenses not anticipated in the budget [state reason(s) for cash flow shortage]; and

WHEREAS, the Board has determined that it will be in the best interests of the Association to temporarily transfer money from the reserve fund to the general operating account;

BE IT RESOLVED that the President and the Treasurer are hereby authorized and instructed to transfer the amount of $_________ from the reserve account to the general operating account. The money transferred and expended, pursuant to this Resolution, shall be restored to the Association's reserve fund not more than one (1) year from the initial date of the transfer and shall be repaid from the following source: [state source of repayment, e.g., increase in regular assessments, a special assessment or some other source] 

By: ____________________________ 
       Association's Secretary

Date: _____________

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Adams Stirling PLC