Falls Run Community Association, Inc.

Administrative Resolution No. 08-02

(Procedure for Replacement Reserve Disbursements)

1.  The motion authorizing an expenditure for purchase of goods or services, or a motion made later but explicitly referencing the original motion authorizing an expenditure, should explicitly identify the Replacement Reserve as the source of funds, and should identify the component number and title of the Mason and Mason report which is relevant to the desired use of Replacement Reserve funds.  If the purchase is to be only partially funded by the Replacement Reserve, the amount to be taken from the Replacement Reserve must be explicitly stated in the motion.

2.  After a motion to use the Replacement Reserve as a funding source is approved by vote of the Board of Directors, the Treasurer of the Falls Run Community Association, Inc. will provide the Property Manager with written certification of the approved Replacement Reserve expenditure to include the date of approval, the goods or services to be obtained, the amount to be taken from the Replacement Reserve, and the relevant component number and title of the Mason and Mason report.

3.  The Property Manager will attach a copy of the appropriate Treasurer’s certification to every invoice directly associated with the goods and services approved for funding from the Replacement Reserve, and forward them to our management services company for recording and payment.

4.  After payment from operating funds is made, our management services company will use a wire transfer to reimburse the operating account from the Replacement Reserve money market account at B B & T.  No transfer from the Replacement Reserve will occur without the Treasurer’s written certification.

This administrative resolution is effective as of 27 August 2008.

FALLS RUN COMMUNITY ASSOCIATION, INC.

_________________________/s/__________________________

By:  Donald M. Horan, President

I attest that the foregoing Administrative Resolution No. 08-02 was adopted and approved by the Board of Directors at a duly called meeting of the Board of Directors on 27 August 2008.

________________________/s/___________________________

By:  Thomas J. Whalen, Secretary