CIVIL CODE
SECTION 5375-5385

Managing Agent

5375.  A prospective managing agent of a common interest development
shall provide a written statement to the board as soon as
practicable, but in no event more than 90 days, before entering into
a management agreement which shall contain all of the following
information concerning the managing agent:
   (a) The names and business addresses of the owners or general
partners of the managing agent. If the managing agent is a
corporation, the written statement shall include the names and
business addresses of the directors and officers and shareholders
holding greater than 10 percent of the shares of the corporation.
   (b) Whether or not any relevant licenses such as architectural
design, construction, engineering, real estate, or accounting have
been issued by this state and are currently held by the persons
specified in subdivision (a). If a license is currently held by any
of those persons, the statement shall contain the following
information:
   (1) What license is held.
   (2) The dates the license is valid.
   (3) The name of the licensee appearing on that license.
   (c) Whether or not any relevant professional certifications or
designations such as architectural design, construction, engineering,
real property management, or accounting are currently held by any of
the persons specified in subdivision (a), including, but not limited
to, a professional common interest development manager. If any
certification or designation is held, the statement shall include the
following information:
   (1) What the certification or designation is and what entity
issued it.
   (2) The dates the certification or designation is valid.
   (3) The names in which the certification or designation is held.



5380.  (a) A managing agent of a common interest development who
accepts or receives funds belonging to the association shall deposit
those funds that are not placed into an escrow account with a bank,
savings association, or credit union or into an account under the
control of the association, into a trust fund account maintained by
the managing agent in a bank, savings association, or credit union in
this state. All funds deposited by the managing agent in the trust
fund account shall be kept in this state in a financial institution,
as defined in Section 31041 of the Financial Code, which is insured
by the federal government, and shall be maintained there until
disbursed in accordance with written instructions from the
association entitled to the funds.
   (b) At the written request of the board, the funds the managing
agent accepts or receives on behalf of the association shall be
deposited into an interest-bearing account in a bank, savings
association, or credit union in this state, provided all of the
following requirements are met:
   (1) The account is in the name of the managing agent as trustee
for the association or in the name of the association.
   (2) All of the funds in the account are covered by insurance
provided by an agency of the federal government.
   (3) The funds in the account are kept separate, distinct, and
apart from the funds belonging to the managing agent or to any other
person for whom the managing agent holds funds in trust except that
the funds of various associations may be commingled as permitted
pursuant to subdivision (d).
   (4) The managing agent discloses to the board the nature of the
account, how interest will be calculated and paid, whether service
charges will be paid to the depository and by whom, and any notice
requirements or penalties for withdrawal of funds from the account.
   (5) No interest earned on funds in the account shall inure
directly or indirectly to the benefit of the managing agent or the
managing agent's employees.
   (c) The managing agent shall maintain a separate record of the
receipt and disposition of all funds described in this section,
including any interest earned on the funds.
   (d) The managing agent shall not commingle the funds of the
association with the managing agent's own money or with the money of
others that the managing agent receives or accepts, unless all of the
following requirements are met:
   (1) The managing agent commingled the funds of various
associations on or before February 26, 1990, and has obtained a
written agreement with the board of each association that the
managing agent will maintain a fidelity and surety bond in an amount
that provides adequate protection to the associations as agreed upon
by the managing agent and the board of each association.
   (2) The managing agent discloses in the written agreement whether
the managing agent is deriving benefits from the commingled account
or the bank, credit union, or savings institution where the moneys
will be on deposit.
   (3) The written agreement provided pursuant to this subdivision
includes, but is not limited to, the name and address of the bonding
companies, the amount of the bonds, and the expiration dates of the
bonds.
   (4) If there are any changes in the bond coverage or the companies
providing the coverage, the managing agent discloses that fact to
the board of each affected association as soon as practical, but in
no event more than 10 days after the change.
   (5) The bonds assure the protection of the association and provide
the association at least 10 days' notice prior to cancellation.
   (6) Completed payments on the behalf of the association are
deposited within 24 hours or the next business day and do not remain
commingled for more than 10 calendar days.
   (e) The prevailing party in an action to enforce this section
shall be entitled to recover reasonable legal fees and court costs.
   (f) As used in this section, "completed payment" means funds
received that clearly identify the account to which the funds are to
be credited.


5385.  For the purposes of this article, "managing agent" does not
include a full-time employee of the association.