Cherrk Creek Misc

RESOLUTION
OF THE
CHERRY CREEK VILLAGE HOMEOWNERS ASSOCIATION
REGARDING INVESTMENT OF RESERVE POLICY
SUBJECT: Adoption of an Investment Policy for reserves of the Association.
PURPOSES: To adopt a policy for the investment of reserve funds.
AUTHORITY: The Declaration, Articles of Incorporation and Bylaws of the
Association and Colorado law.
EFFECTIVE
DATE: January 1, 2006
RESOLUTION: The Association hereby adopts a Policy as follows:
1. Scone. In order to properly maintain areas in the Community that are the
responsibility of the Association, to comply with state statutes, to manage reserve funds,
and to protect the market value of Owners' homes and livability in the Community, the
Board of Directors determines that it is necessary to have policies and procedures for the
investment of reserve funds.
2. Purpose of the Reserve Fund. The purpose of the Reserve Fund shall be to
responsibly fund and finance the projected repair and replacement of those portions of the
Community that the Association is responsible for and for such other funding as the
Board of Directors may determine. The portions of the Community that the Association
is responsible for typically have limited but reasonably predictable useful lives.
3. Investment of Reserves. The Board of Directors of the Association shall invest
funds held in the Reserve Funds accounts to generate revenue that will accrue to the
Reserve Funds accounts balance pursuant to the following goals, criteria and policies:
(a) Safety of Principal. Promote and ensure the preservation of the Reserve
Fund's principal.
(b) Liquidity and Accessibility. Structure maturities to ensure availability of
assets for projected or unexpected expenditures.
(c) Minimal Costs. Investments costs (redemption fees, commissions, and
other transactional costs) should be minimized.
(d) Diversify. Mitigate the effects of interest rate volatility upon reserve
assets.
(e) Return. Funds should be invested to seek the highest level of return.
4. Limitation on Investments. Unless otherwise approved by the Board, all
investments will be FDIC (Federal Deposit Insurance Corporation) insured and /or
guaranteed by the United States Government.