Real Estate Law
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No - they do state that it has to be with an insured institution - which does not in it self mean that if your invest tanks that your investment loss will be covered by that institution!!!
However, the Association as a not for profit corporation does have a fiduciary duty to owners under RCW § 11.100.020 Management of trust assets by fiduciary.
(1) A fiduciary is authorized to acquire and retain every kind of property. In acquiring, investing, reinvesting, exchanging, selling and managing property for the benefit of another, a fiduciary, in determining the prudence of a particular investment, shall give due consideration to the role that the proposed investment or investment course of action plays within the overall portfolio of assets. In applying such total asset management approach, a fiduciary shall exercise the judgment and care under the circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, and if the fiduciary has special skills or is named trustee on the basis of representations of special skills or expertise, the fiduciary is under a duty to use those skills. http://apps.leg.wa.gov/rcw/default.aspx?cite=11.100.020
By making risky investments the argument can be made that the Board is breaching
their fiduciary duty to the owners. A loss incurred as a result of the investment may
open the Board up to personal liability.
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