HRS §514D-14
Limits on money kept in reserve accounts
This section sets a cap on how much the authority can keep in a reserve account. The cap is five percent of the total unpaid balance of enrolled loans. Any extra money must be moved to the condominium loan revolving fund at least once a year.
condominium associations
The statute, as written — Limitations on amounts retained in reserve accounts
The maximum aggregate amount the authority may retain on deposit in a reserve account shall not exceed five per cent of the aggregate outstanding principal balance of enrolled loans. On a regular basis, no less than annually, the authority shall withdraw from a reserve account the amounts in excess of the limit and deposit that amount into the condominium loan revolving fund. A withdrawal of money authorized under this section shall not reduce an active reserve account to an amount that is less than the aggregate amount allowed under this section.
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