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Bankruptcy
Should association reserves be invested in a non-FDIC-insured firm?

Question: About six years ago our homeowner association was sued. Three of five board directors were also individually sued for breaching their fiduciary duties, causing big rises in our monthly fees. In addition to the insurer's attorneys defending the association, the three directors immediately voted to hire individual attorneys at titleholders' expense. Those directors — and the management company that advised them to do what they did to get sued — cost owners well over $1 million. Because of those directors, our insurance premiums remain high, maintenance substandard, plumbing systems in chronic disrepair, infrastructure dated and crumbling. Driveways are cracked...

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