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MEMBER'S RIGHT TO
INSPECT AND COPY RECORDS Right to Inspect & Copy. Members of an association have the
right to inspect and copy the association's books and records. Civ.Code 1363(f), Civ.Code
1365.2, Corp.Code 8330, Corp.Code
8333 The association may bill the requesting member for
the direct and actual cost of copying requested documents. Proper Purpose. A member's request to inspect
records must be for a proper purpose reasonably related to his or her interests
as a member of the association. Civ.Code 1365.2(e), Corp.Code 8330, 8333 Association records, and any
information from them, may not be sold, used for a commercial purpose, or used
for any other purpose not reasonably related to a member's interest as a
member. Associations may bring actions against persons who violate this section
for injunctive relief and damages. Civ.Code 1365.2(e) Right to Designate Agent. Members may designate another
person, agent or attorney to inspect records. The member shall make the
designation in writing. Civ.Code 1365.2(b)(2), Corp.Code 8311 Inspection Location. Records must be made available at
the association’s onsite business office or, if there is none, at a mutually
agreed upon location. If the parties cannot agree on a location or if the
member submits a request for copies of specifically identified records, the
association may copy the documents and mail them to the member. Civ.Code 1365.2(c) Electronic Form. Requesting parties shall have the
option of receiving specifically identified records by electronic transmission
or machine-readable storage media as long as those records can be transmitted
in a redacted format that does not allow the records to be altered. The cost of
duplication shall be limited to the direct cost of producing the copy of a
record in that electronic format. Civ.Code 1365.2(h) Records Subject to Inspection. The following records are subject
to inspection and copying (Civ.Code 1365.2(a)).
Except for minutes which are permanently available, associations need only
produce records for the current and 2 previous fiscal years. Older records may
be disposed of in accordance with a proper disposal policy. * financial
documents required by Civ.Code 1365 (budget,
reserves, lien policies, insurance, financial statement, etc.) * financial
documents required by Civ.Code 1368 (governing
documents, assessments, violation notices, construction defects, etc.) * interim unaudited
financial statements, including (i) balance sheet,
(ii) income and expense statement, (iii) budget comparison, and (iv) general
ledger * salaries
paid to employees, vendors, or contractors (except as provided by attorney-client
privilege) which shall be set forth by job classification or title, not by the
employee's name, social security number, or other personal information * executed contracts that are not
privileged (privileged contracts shall not include contracts for maintenance,
management, or legal services) * state and
federal tax returns * reserve account balances and of
payments from reserve accounts * board,
committee and membership meeting agendas and minutes * membership
lists * invoices, receipts, canceled checks,
purchase orders approved by the association, credit card statements for credit
cards issued in the name of the association, statements for services rendered,
and reimbursement requests submitted to the association See records
not subject to inspection. Updated Adrian J. Adams, Esq., is a Managing Partner of the law firm of Adams & Kessler LLP |
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