California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 5 — Common Interest Developments, Chapter 1 — General Provisions, Article 2 — Definitions, Section 4177
“Reserve accounts” means both of the following:
(a) Moneys that the board has identified for use to defray the future repair or replacement of, or additions to, those major components that the association is obligated to maintain.
(b) The funds received, and not yet expended or disposed of, from either a compensatory damage award or settlement to an association from any person for injuries to property, real or personal, arising from any construction or design defects. These funds shall be separately itemized from funds described in subdivision (a).
Notes
Defines reserve accounts as money the board identifies for future repair, replacement, or additions to major components the association must maintain, plus unspent proceeds from compensatory damage awards or settlements for construction or design defects affecting property. The latter funds must be separately itemized from the maintenance-related reserve funds.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 4177 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-5/chapter-1/article-2/section-4177