If the sale of a property is held up because of a HOA having insuffient deposit funds for replacement, can they be sued?

I have got a buyer, but the lenders of the buyer are putting me through hell because my HOA have an insufficient deposit fund for replaement of things like tennis court etc. But when I look at there paper work, I can't see where the money has gone because no major replacement or repair have been done for years. Yet about $40-42k is missing from the budget.

To answer the title of your post; yes you can sue (you can sue for almost anything) but be prepared for it to take years, be expensive and there is no guarantee of success; you would have to prove the Board or Boards deliberately violated the business principle. (Would others given the same information acted in a similar manor.) Are you saying the money is missing (a crime) or did they simply not save enough?

Terence,
I expect Terence will not be back to discuss this Reserve issue, and he is ready to take any deal offered.

But the references made here about Reserve Funds are surely something to take seriously. I am just wondering if this may be an early sign of things to come from the FHA. I believe that some states require a Reserve fund be maintained, the amount is less clear. Don't know if this is condo or HOA but since the apparently ow the pool and tennis courts I suspect Condo. It does appear this new posture of FHA to enforce criteria on condos before they give mortgages could be extensive. From what I read the expanse of these requirements is not firm yet. Now the question of whether the seller of property could sue the Condo for some of this and win is unknown.
Look at this scenario: If the FHA decrees that the # of rental units in a condo is (for example) 30 %, and over the years this % is now 50%, and the FHA says no more Mortgage money for this place. Then when the seller wants to sell can he sue the association for restricting his free market possibilities. The old way was, oh, I will just go to another lender and some company would lend the money, bundle the mortgages and sell them to whoever. That could change in this new real estate mortgage market, and many companies may be forced to adopt the same rules as FHA and other large providers.
So a question could be: If condos don't have rental guidelines, and they are FHA mandated for mortgages, are they liable? I don't know, but I personally think that many many condos could benefit from have rental # restrictions. Certainly there are plenty of condos that do have rental restrictions of one kind or another and they work to the benefit of all. But, this Real Estate bubble and bust, and now what looks like some demands of fiscal responsibility by the FHA, will all this create a demand on the Condo association covenants to be enforced for such things as Reserve funds and rental limitations?