KenH6 (Tennessee)
Posts: 2
Posts: 2
Posted:
Can an HOA in Tennessee purchase I Bonds for it's reserve funding/
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Investment in I Bonds
Started by KenH6 • 2 replies • 652 views
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AugustinD
Posts: 3,698
Posts: 3,698
Posted:
Is this a condominium? Or is it a non-condo HOA?
Either way, I do not see anything in Tennessee's HOA/COA statutes that limits what a HOA/COA may "invest" its reserves in. Obviously directors should only invest in bonds or money market accounts protected by FDIC yada.
I would caution to make sure there is enough in cash to take care of short term needs.
I see that I bonds today are liquid after one year. If the HOA cashes the bonds before five years, this results in a loss of three months interest.
Either way, I do not see anything in Tennessee's HOA/COA statutes that limits what a HOA/COA may "invest" its reserves in. Obviously directors should only invest in bonds or money market accounts protected by FDIC yada.
I would caution to make sure there is enough in cash to take care of short term needs.
I see that I bonds today are liquid after one year. If the HOA cashes the bonds before five years, this results in a loss of three months interest.
KenH6 (Tennessee)
Posts: 2
Posts: 2
Posted:
This is a 15 unit townhouse HOA
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