Swiss Alpine Association - By-Laws
BY-LAWS OF THE
SWISS ALPINE ASSOCIATION
ARTICLE XIII. FINANCE
Section 5. The Board of Directors shall establish and maintain a Reserve Account as required by State of Michigan Statutes. The Reserve Account shall be maintained as stated below:
- A minimum reserve amount of two (2) times the average annual operating expenses over the past three (3) years shall be maintained. This amount shall be hereafter referred to as the Protected Reserves.
- The Board of Directors shall allocate a minimum of 5% of the annual assessments to the Reserve Account, unless the Reserve Account value is greater than three (3) times the average annual operating expenses over the past three (3) years. This amount shall be hereafter referred to as the Target Reserves.
- The Board of Directors may allocate additional funds above the Target Reserve amount.
- The Board of Directors may use funds from the Reserve Account for establishment, repair, replacement, or protection of association assets, by a simple majority vote of the Board of Directors, provided the expenditure does not result in a Reserve Account value less than the Protected Reserve amount.
- The Reserve Account may be below the Protected Reserves amount
under the following conditions:
- During the initial funding period.
- When expenses warrant the use of Protected Reserve funds to cover incurred costs for the repair, replacement, or protection of association assets. The use of Protected Reserves is subject to a unanimous vote of the Board of Directors with affirmative concurrence from the Rules, Finance and Architectural committee chairpersons, or vote of the membership pursuant to Article V and Article XIV of the Swiss Alpine By-Laws.
Any and all provisions contained in the By-Laws of the Swiss Alpine Association and previous Amendments, which are not specifically amended herein, shall continue to be in full force and are affirmed, except as specifically amended herein.
This Amendment shall apply to any present or future unpaid dues or assessments.