COLUMN: Barbara Holland

Q. At a recent homeowners meeting, it was brought to our attention that all of our reserve funds were in a credit union, which is not federally insured, but secured through a private insurance firm.

There are three different accounts. The joint owners of the accounts are the president, vice president and treasurer. I find it hard to believe that they can do this under NRS 116, as joint owners.

It was my understanding that reserve funds should be in different banks that are FDIC insured, under the association's name, and with signers such as the president and treasurer only. What happens when we have board elections with new officers? How can they be signatories on these accounts or have any access to them?

A. State law pertaining to signatures required for withdrawals from the reserve account specify that money may not be withdrawn without the signatures of at least two members of the executive board.

Many associations list the president, vice president, secretary and treasurer simply because people resign and vacate from the office or because of staggered terms. Any combination of two officers would be needed to withdraw funds.

As long as the institution has the right to conduct business in Nevada, reserve funds can be placed in traditional banks or private investment firms.

In this case, it appears as though the association funds are not under the name of the association, but of three individuals who belong to the credit union. If this is the case, the homeowners need to ensure the funds are transferred to a proper institution, by either pressing the board, contacting the ombudsman's office and, if necessary, obtaining legal assistance.

Q. I live in a gated community. The association will not give me a code to our gate.

One night I came home and my remote control would not open the gate. I do not know any of my neighbors, so I could not ring anyone's phone to allow me to enter. Eventually, I was able to follow another car in.

I called the management company and explained the story; they told me that they could not release any code numbers. Can they withhold a gate code to condo owners?

A.The answer is yes. Security is in the eyes of the beholder; it's totally perception.

When associations give out gate codes, they might as well keep the gates open. Residents start giving out gate codes to friends, vendors and others. The entire concept of having a gated community begins to disintegrate.

Owners must make sure that they can gain entry by keeping extra batteries for their gate openers, and so forth.

What would you do if you were locked out of your home? If you did not have an extra key, you would call the locksmith. Inconvenient, yes, but it is a step for helping to keep the community more secure.

Questions for Barbara Holland may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.

Barbara Holland, Certified Property Manager, is president and co-owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors.

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