Reserve funds transfers must be documented in accordance with the law. The Davis-Stirling Act permits a board to transfer funds from its reserve account on a temporary basis to the association's operating account on a temporary basis for one year to meet short-term cash flow requirements or for necessary expenses. Such temporary transfers require that a resolution of the board be approved by a quorum of the board at an open meeting. A form resolution has been provided. Likewise, if the funds cannot be paid back within the one year period, the board may approve a delay in the repayment by approving another resolution at an open meeting.

Only board members are authorized to sign reserve account checks.