California Civil Code

§ 5380

CIV § 5380 Effective Jan 1, 2022Div. 4 · Part 5 · Ch. 6 · Art. 9

Statute text

(a)A managing agent of a common interest development who accepts or receives funds belonging to the association shall deposit those funds that are not placed into an escrow account with a bank, savings association, or credit union or into an account under the control of the association, into a trust fund account maintained by the managing agent in a bank, savings association, or credit union in this state. All funds deposited by the managing agent in the trust fund account shall be kept in this state in a financial institution, as defined in Section 31041 of the Financial Code, which is insured by the federal government, or is a guaranty corporation subject to Section 14858 of the Financial Code, and shall be maintained there until disbursed in accordance with written instructions from the association entitled to the funds.

(b)At the written request of the board, the funds the managing agent accepts or receives on behalf of the association shall be deposited into an account in a bank, savings association, or credit union in this state that is insured by the Federal Deposit Insurance Corporation, National Credit Union Administration Insurance Fund, or a guaranty corporation subject to Section 14858 of the Financial Code, provided all of the following requirements are met:

(1)The account is in the name of the managing agent as trustee for the association or in the name of the association.

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Legislative history

Amended by Stats. 2021, Ch. 270, Sec. 1. (AB 1101) Effective January 1, 2022.