605.28 Related-party Transactions
In a CIRA, related parties may include members of the CIRA's
governing board, management, and their immediate families and the
developer/sponsor. It is not uncommon for CIRAs to deal with related
parties. (As discussed in paragraph 605.21,
a CIRA's board members typically serve simultaneously as officers of
the CIRA.) Examples of related-party transactions with board members are
• Directors' fees.
• Board member is an insurance agent, CIRA broker, or on the board of a bank or other company that services the association.
• A member, or his or her relative, provides maintenance, professional, or other services to the CIRA on a nonemployee basis.
• Board member loans money to the CIRA.
• Member is materially delinquent in paying CIRA assessments.