Hoa unable to use HOA Funds

Started by JimmyT1 • 4 replies • 451 views

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JimmyT1 (Alabama)
Posts: 2

Posted:

I am the Past President of a small HOA. The HOA WAS transferred to an elected board when the developer completed his word in phase one of the development. After three years as President, elections done each year, I transferred all responsibility to The then Vice President, due to selling my home and moving to another state. As I stated , elections were held each year, nominations for each office and voted on by those that even voted. All Banking and signature requirements I held as President were removed by the Bank who held all funds and banking in the name of the HOA. I had my name removed from all duties in writing to the board and the bank. After three years of resigning my office, the Vice-President that took over my Position as President passed away. His wife call me and says that the HOA has been unable to access funds of the HOA as I am still listed as President. My question if I have been gone for three years who has been signing checks and making deposits of the HOA. The Bank says there is no way the HOA can access funds while I am Listed as President. I am unable to travel due to health issues and the Bank states I have to personally appear and remove my name from the banking account. Any suggestons

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Sounds like you never removed your name from the bank's signature card. Not sure who has been writing the checks. Shows how well the bank's been looking at them. If it were me, I'd ask for a copy of these cashed checks to see the signatures. Plus find a way to bring on other board members to be on the signature card.

It may take proof to be added to the card like a corporate sealed document or meeting notes to show they are elected board members. Maybe instead of removing yourself, you have additional people added.

We always had a 2 signature rule in our HOA. So the President and another board member had to sign all the checks. Which did mean others had to be added to the signee card every year.

Former HOA President

MarkM19 (Texas)
Posts: 1,459

Posted:

Jimmy,
I think Melissa's advice is perfect. What would I do if I were you? I would worry about my health and let them worry about an HOA that you are no longer involved in.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By JimmyT1 on 12/19/2019 12:33 PM
... All Banking and signature requirements I held as President were removed by the Bank who held all funds and banking in the name of the HOA. I had my name removed from all duties in writing to the board and the bank. ...

It sounds to me like you did everything reasonably required of you at the time. I wouldn't worry about it since obviously others on that board dropped the ball somewhere after you left. Let them worry about it. We almost had the same thing happen here last year. Luckily the president from 5 years ago still lives in the community and her signature was enough to regain control over the accounts.

Absent that, our Plan B was to hire an attorney to assist us in regaining control of our money from the bank. Some combination of affidavits, sworn statements, board resolutions, etc. would probably have been required, and we figured an attorney could shepherd through the required signatures and approvals if the bank gave us a hard time. We were fortunate in that we didn't have to use Plan B.

Enjoy your life and let the former HOA deal with whatever problems they've created for themselves.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Jimmy,

If the bank has a branch where you live, you can simply go to that branch for assistance in this issue.

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