CDIC Insurance and Secured Funds
A new board member raised issue of CDIC insurance coverage for Reserve Funds in light of recent bank failures… does anyone have insight on this? As I understand it, every $100,000 in contributions would need to be deposited with a unique financial institution (per CDIC guidelines). We are investing in High Interest Svgs and short-term GICS since we are a new development (<5 yrs) currently so would only need 3 separate deposits with qualifying institutions but when the RF reaches $1M plus, it would become very cumbersome.
Given the above, I’d say our risk tolerance is very low so anything other than GICs would likely not be approved either. Although we are a new complex, we have already identified some repairs that will impact reserve funds. Our fund study is about 3 yrs old, development was incomplete at time of study. Construction is now finished, I think a new RFS should be done now to ensure our contributions will meet our current needs, rather than wait until it is due at 5 yr point.
Interested in hearing thoughts from seasoned condo owners/board members … Thanks!