Frozen Funds

Started by EbonyJ • 7 replies • 1448 views

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EbonyJ (Tennessee)
Posts: 62

Posted:

Our membership recently removed our board (who started paying themselves $25 an hr, even though we have a management company) I was elected President, we closed the existing bank account and opened another since the secretary would not give back the checks or any HOA documents. I just learned today that the old secretary went to the bank claiming he was a signer on the acct) and the bank now has frozen the funds citing that two different people were claiming rights to the money. I have left a message at the attorney's office. This has become highly annonying. The prior board calls the mgmt office 6 times a day and e-mails daily, threatening them not to listen to the new board, etc.. What can we do about the frozen assests and stop the prior board actions????

TimB4 (Tennessee)
Posts: 21,059

Posted:

The bank did the right thing.

Try:

1) Have your registered agent draft a letter to the bank.
2) Provide a copy of the documents filed with the State Corporation Commission who identifies the officers of the Association.

Who does the management company and Association attorney recognize as the proper Board?

EbonyJ (Tennessee)
Posts: 62

Posted:

The attorney and the management company recognizes the new board. The agent audited the special meeting removing the board and sent the information to the prior board.. The prior board refused to show up at the meeting

TimB4 (Tennessee)
Posts: 21,059

Posted:

Have the attorney write a letter to the bank.

and

Have the attorney to write a cease and desist letter to each past board member.

It might not stop all of their complaining but it should stop some. Some of it you will just have to deal with, as they are still members of the Association and have certain rights as a member.

Tim

PetunkaM (Florida)
Posts: 1,009

Posted:

You know, Ebony, what is going on in your Association is highly unusual. Bank does not care if your attorney and the management company recognize the new board. No letter may solve the issue. Be ready for some kind of legal action.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Petunka has a good point. You should probably just ask the Bank what documentation they will require to release the funds.

If it's a court order, then you will need to talk to your attorney on how to have the court recognize the election results.

EbonyJ (Tennessee)
Posts: 62

Posted:

Thanks to all who responded, this is a very unusual group... They e-mailed the management company and asked them mail all the association money to their home addresses and they have submitted invoices to the management company totaling $1,500 for what they call noncompliance for requested info. Even though we have given them their requested info. It seems that this is all money driven!!!

PetunkaM (Florida)
Posts: 1,009

Posted:

Tim,
Actually, I would not talk to the Association attorney at all about this. I would deal directly with the Bank’s attorney. For many reasons I do not care to post here.

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