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Articles of Incorporation shall be supplemented by the
following provisions.
6.2 The receipts and expenditures of the Association
shall be credited and charged to accounts-under the following
classifications as shall be appropriate, all of which
expenditures shall be common .expenses:
(a) Current expense, which shall include all
receipts and expenditures within the year for which the
budget_is made including a reasonable allowance for
contingencies and working funds, except expenditures
chargeable to reserves, to additional improvements or to
operations. The balance in this fund at the end of the
year shall be applied to reduce the assessments for
current expense for the succeeding year.
(b) Reserve for deferred maintenance, which shall
include funds for maintenance items that occur less
frequently than annually.
(c) Reserve for replacement, which shall include
funds for repair or replacement required because of
damage, depreciation or obsolescense. '
(d) Betterments, which shall include the funds to be
used for capital expenditures for additional improvements
or additional personal property that will be part of the
common elements.
(e) Operations, which shall include the gross
revenues from the use of the common elements. Only the
additional direct expense required by the
revenue-producing operation will be charged to this
account, and any surplus from such operation shall be
either distributed to the members in proportion to their
respective shares of the common elements, or used to
reduce the assessments for current expense in the year
following the year in which the surplus is realized.
Losses from operations shall be met by special assessments
against unit owners, which assessments may be made in
advance in order to provide a working fund.
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6.2 The Board of Directors shall adopt a budget for each
calendar year that shall include the. estimated funds required
to defray the common expense and to provide and maintain funds
for the foregoing accounts and reserves according to good
1 accounting practices as follows:
(a) Current expense, the amount for which shall not
exceed 115x of the budget for this account for the prior
year.
(b) Reserve for deferred maintenance, the amount for
which shall not exceed 115x of the budget for this account
for the prior year.
(c) Reserve for replacement, the amount for which
r shall not exceed 115x of the budget for this account for
the prior year.
(d) Betterments, which shall include the funds to be
F used for capital expenditures for additional improvements
or additional personal property that x111 be part of the
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