Interest Bearing Account for Condo Association

[Ken]

Fabio, may a condo association have an interest bearing account? I am particularly interested in the reserve fund account.

I have been told there is something in the condo law that prohibits a condo association from having interest bearing accounts. However, if so, the reserve fund steadily loses value as the peso depreciates and prices rise.

[Eddy]

This is not a legal opinion, but our reserve fund was used to buy CD's. The interest made up for more than the devaluation. They are in the manger's name but need another signature to cash in. We have 4 people that can sign. 2 of 4 are required. I was told that in order to have them in the Condo's name, all the owners would have to come to the bank and sign.

[Ken]

Thanks, Eddy. We, also, are buying CDs. But we would still like to know whether or not there is a prohibition on condo associations having interest bearing accounts.

[Fabio J. Guzman]

A condo association can have an interest bearing account. Condo Law #5038 does not prohibit it in any way.

[Ken]

Thanks, Fabio.