Condo Treasurer Resigns and Takes Checkbook!

K.B. from Hartford County writes:

Dear Mister Condo,

The treasurer resigned two days ago and has so far has refused to turn over the checkbook, financial records, etc. to the association president or the newly appointed treasurer. What recourse does the Board have?

Mister Condo replies:

K.B., I am sorry for the turmoil at your association. A recalcitrant Board Member can be a real challenge for any association. Even more so when that Board Member is the Treasurer and the keeper of financial records and the checkbook. Did this person resign as Treasurer or fully resign from the Board? For purposes of my answer, I will assume both. If they have been asked politely and refused, it is time to either involve the association attorney, who will ask not so nicely and threaten with a lawsuit, or the police. If any of the funds of the association are misappropriated by the Treasurer, resigned or otherwise, it may be time to call the police. At the very least, I would terminate the checking account and start with a new account that this person cannot access. Protecting the association funds is no laughing matter. Getting the association attorney involved is worthwhile as you are treading into potentially costly waters here, K.B.. The other records are important, too, but not nearly as costly to the association as theft of funds could be. Good luck!

One thought on “Condo Treasurer Resigns and Takes Checkbook!

  1. This is a perfect example of why my management company (IAMHOA.com) does not allow board members to have check stock or online access to the bank accounts. It’s also why self management isn’t always a good answer. A solid management company that keeps a board out of hot water legally and up to date with the constant changes, AND safeguards their money, is worth paying for.

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