Term
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Definition
Amend a motion is used to modify another motion. The motion to amend takes three basic forms:
- Inserting or adding words or paragraphs
- Striking out words or paragraphs
- Striking out words and inserting or adding others, or substituting an entire aragraph or complete resolution for another
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Term
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Definition
Device used to record choices made by voters. Each voter uses one ballot, which are not shared. |
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Term
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Definition
Highlights maters to be decided and recommendations by the committee. Supporting research should be included in the reports. Committees need to clearly state the actions they are asking the bord to take and you should provide your committees with a suggested format for their reports and a sample. |
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Term
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Definition
A formal discussion during an election involving opposing candidates vyin for the same position. |
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Term
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Definition
When a board has a discussion or makes decisions of sensitive nature.
Typical topics:
- Personnel issues
- Contract negotiations & discussions
- lawsuits
- legal matters
- doverning document violations
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Term
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Definition
Report on the community's financial condition and activities includes:
- General ledger
- Variance
- A/P
- Income statement
- Balance sheet
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Term
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Definition
Over 50% of votes needed to win an election.
Majority vote can come from owners attending in person or by proxy to decide all matters - except special issues |
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Term
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Definition
This is the manager's report on the association's current management and administrative activities. |
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Term
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Definition
Document decisions made during the meeting.
Provides a permanent public record of positions and actions taken by the board. |
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Term
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Definition
Formal proposal stating that the association took a certain action. |
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Term
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Definition
Official announcement meeting will take place
sent in writin to board memebers at least a week before meeting |
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Term
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Definition
Body of rules, ethics, and customs governing meetings and other operations.
Advantages:
- staying on the agenda
-Discussing one subject at a time
- Giving each participant a chance to speak
-Speaking only on the issue being discussed
- Speaking only when recognized by the chair
-Addressing questions and comments to the chair
-Deciding issues through motions, seconds and votes
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Term
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Definition
Awards the election to the candidate with the most votes, regardless of whether they received majority votes. |
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Term
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Definition
Agency, function or power of a persona uthorized to act or vote in place of another resident who could not be present. |
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Term
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Definition
# of residents required to be present to transact business legally.
# is established in By-laws |
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Term
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Definition
-Participant does not go to vote or does not cast a ballot.
-Can be used to indicate voters ambivilance about the measure or mild disapproval that does not rise to the level of active oppositions.
-Do not count in tallying votes
-Only attent meeting for quorum purposes |
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Term
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Definition
Documented event, task, activity or action that needs to take place.
Usually documented in meeting minutes and recorded in task list of group.
Reviewed at the next meeting and meeting facilitator will check status of these items
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Term
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Definition
List of meeting activities in the order in which they are to be taken up.
Begin with call to order
End with adjournment |
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Term
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Definition
Book that provides common rules and procedures for deliberation and debate in order to place the whole membership on the same footing and speakin the same language. |
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Term
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Definition
Once a motion has been proposed, consideration by the assembly occurs only if another member of the body immediately seconds the motion |
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Term
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Definition
Incomplete items on the agenda rescheduled or tabled for another meeting |
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Term
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Definition
Specific agenda that limits the amount of time focused on specific areas
Used to move meeting along in a mor thorough and prompt pace |
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Term
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Definition
- Most common type of community association
- owner owns his or her lot and/or living unit
- community owns common areas such as tennis courts and roads for the use and benefit of the lot owners |
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Term
Articles of Incorporation |
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Definition
- Bring the corporation into existance
- define its basic purposes and powers
- indicate whether stock will be issued
- indicate whether there will be a board of directors |
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Term
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Definition
-Formally adopted governing regs for the administration and management of a community association |
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Term
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Definition
COVENANTS - CONDITIONS - RESTRICTIONS
- governing docs regulating how association operates and what rules & regs owners, tenants and guest must obey
- may also be called Bylaws, Master Deed, the houses rules or another name
- legally enforceable by the homeowners association (unless a specific provision conflicts with federal, state or local laws) |
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Term
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Definition
Group of owners that wish to provide a communal basis for preserving, maintaining, and enhancing their homes and property |
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Term
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Definition
-Living unit fully owned by an individual with an undivided interest in the common elements of the community.
-The community association itself owns no real estate as an association. |
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Term
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Definition
-Individual owns stock or membership in the cooperative
-also holds a proprietary lease or occupancy agreement for his or her living unit. |
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Term
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Definition
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Term
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Definition
-provide for legal structure and operation of community
-Give boards authority to govern by providing for the operation and regulation of association
-Give guidence and protect boards
-Protect association members by spelling out their rights and responsibilities
-supported by local ordinances, state statues, and federal regulations
Typically Include:
- Declaration or master deed, Covenants, Conditions & Restrictions (CC&Rs) -condos & planned communities
-Proprietry lease, master lease, or occupancy agreement -cooperatives
-Articles of incorporation
-Bylaws
-Rules & Regs
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Term
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Definition
-hold harmless
-exempt an individual or entity from responsibility of claims made against the organization and to reimburse the individual or entity for damages or expenses incurred as a result of such claims |
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Term
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Definition
An organization of homeowners in a large condo or planned unit development (PUD)
-includes reps from other smaller homeowner organizations |
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Term
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Definition
A development which is designed to mix two or more "uses" of land together
-like shopping center with room for a dentists office |
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Term
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Definition
rental agreement between cooperative housing corp and a share holder allowing use of a certain unit on premises |
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Term
Public offering statement |
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Definition
Disclosure statement prepared by the developer that contains all material facts about a property offered for sale
-must be provided to a prospective purchaser in accordance with applicable state or federal law |
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Term
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Definition
Motion that follows a set format and is formally adopted by the board of directors |
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Term
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Definition
Formal written enactment of a legislative authority that focerns a country, state, city or county |
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Term
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Definition
Cluster of community association types that can include aspects of homeowners associations, condominiums and cooperatives |
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Term
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Definition
-Short-term basis
-temporary oversight of issue or review of standing rules of that community
-when issue cannot be absorbed into scope by other standing committees present in association
-Task-oriented
-Disband when task is completed
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Term
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Definition
-directors assigned to certain committees
-guide committee on Board policy and procedures
- report back to Board
-must distinguish role from committee chairperson |
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Term
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Definition
- court will not consider board negligent if board has exercised reasonable business judgement making a decision
-court will not subsitute own judgement for the Boards
-board must demonstrate how it reached decsions
- up to the court to decide whether board exercised reasonable business judgement |
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Term
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Definition
-requires directors to act in the best interests and for the benefit of the corporation (community as whole)
-members must avoid conflicts of interest and acting out of self-interest
-members required to act as reasoble people in managing the association's affairs |
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Term
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Definition
Ethics - specific choices to be made by an indicidual in his or her relationship with others
Professional ethics - rules or standards that govern the conduct of member of a profession.
- The assumption is that the special expertise held by members of the profession holds them to a high standard of trust by others. |
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Term
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Definition
Review of:
-governing documents and existing policies and procedures
- current conditions of property
- owner/resident satisfaction
-fiscal operations
Can be done by board and manager together or by a third-party management consultant |
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Term
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Definition
Statement of goals and objectives appoced by the board
-includes yearly cycle of tasks that management should perform on the community association's behalf |
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Term
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Definition
-Committees which have a continued existence - remain in force indefinitely
-are not related to accomplishment of a specific, once-only task
-budget and nomination committees are examples
-Function oriented
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Term
Alternative dispute resolution |
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Definition
Mediation, arbitration and other ways of resolving conflics with the help of a specially trained neutral third party
- no need for formal trial or hearing |
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Term
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Definition
request for a review of a case by higher authority
-only if permitted by governing documents or statute |
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Term
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Definition
Hearing held when alleged violator fails to appear |
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Term
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Definition
Formal process designed to protect the rights of all parties involved |
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Term
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Definition
Written notice to alleged violator that a hearing will be held to consider his or her alleged violation |
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Term
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Definition
- rules and architectural guidelines may nt contradict or be in conflict with the legal sources that take precedence over them.
-rules and architectural guidelines are lower in the hierarchy of authority for community associations, they may clarify and expand a community's governing documents- but may not conflict with other governing docs
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Term
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Definition
specific statement of required behavior whose violation carries a penalty (aka sanction) |
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Term
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Definition
owner's financial obligation to the community association during a given period of time - usually 1 year
-covers owners share of common expense
-aka common expense liabilities
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Term
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Definition
keep reserve cash balance above 0 |
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Term
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Definition
organized list of titles, descriptions and assigned numbers of all accounts in organization's general ledger
-assigned number helps locate account
-title describes purpose of account |
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Term
Discretionary budget line items |
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Definition
-Based on owner, board and committee desires
-items people would like to have - given their values, lifestyle and preferred level of service
-like social rec expenses and picnic areas |
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Term
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Definition
cost of goos and services used to operate and maintain the community's property |
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Term
FHA
Federal Housing Administration |
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Definition
Regulates and influences items like:
-Insurance an association must carry
-procedures for financial operations
-requirements for the upkeep of property
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Term
FHLMC
Federal Home Loan Mortgage Corporation |
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Definition
Buys mortgages from lenders and in doing so require certain tupes of insurance to be in place |
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Term
FNMA
Federal National Mortgage Association |
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Definition
-Federally established
-secondary mortgage institution
-may set reqs that association will have to meet if owners wish to participate in their financial programs |
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Term
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Definition
Attain and maintain max reserves at or near 100 percent as called for on the component inventory |
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Term
Historical trend budgeting |
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Definition
-assumes that existing line items are needed
-amount of funds alloted to each during the current year is adjusted for expected changes in the coming year |
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Term
Major improvement expenses |
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Definition
-items that are not necessarily required, but are added to improve the overall welfare, safety or life of residents
- or to enhance the value of the community association as reflected in the resale value of units |
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Term
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Definition
section of budget devoted to operating activities including operating expenses and major improvement expenses
-does not include replacement fund |
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Term
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Definition
items that occur on regular basis
day to day
week to week
month to month
year to year |
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Term
Reconciliation of expenses and revenue |
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Definition
After operating and replacement fund budgets are drafted for coming year
must reconcile your estimated expenses with your community's anticipated revenue
reconcile - bring together after a difference |
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Term
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Definition
funds put aside
in reserve
for replacement of major components in common property |
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Term
Reserve cash flow statement |
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Definition
Shows amount to be funded and the amount to be expended from the replacement fund over a given period of time |
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Term
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Definition
-budget planning tool
-considers the current status of replacement fund
-determines stable and equitable funding plan to offset the anticipated future major common area expenditures |
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Term
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Definition
Collective items of income which are appropriated for public expenses |
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Term
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Definition
- Based on baseline-funding concept
-Minimum reserve cash balance in threshold funding is set at a predetermined dollar amount |
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Term
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Definition
All line items are set to zero and the amount of funds allotted to each must be justified. |
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Term
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Definition
-Collection of all assessments due through end of fiscal year
-If annual assessments are due monthly and become delinquent at the end of March, all monthly payments through December of that year are due immediately. |
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Term
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Definition
Consists of recording an uncollectible debt as an expense that the association must absorb.
-usually requires resolution of the board |
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Term
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Definition
-straight bankrupcy or liquidation
-prompt conversion of all the individual's or corp's non-exempt property to cash and payment of creditors to the extend possible |
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Term
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Definition
-aka reorganization
-designed to allow for an orderly payment to creditors that enable a corporation to continue |
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Term
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Definition
-reorganize personal or non-corporate debt
-plan submitted to judge for paying off all or nearly all of debt over specified period of time |
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Term
Fair Debt Collection Practices Act |
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Definition
Required that the person who owes a debt receive written notice |
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Term
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Definition
Legal proceedings filed in court whereby a party with a claim against an owner can claim ownership of the unit involved in order to recover the money it is owed.
-Unit is usually auctioned by the court and sold to the highest bidder. |
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Term
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Definition
Legal claim by one party (community association) on the property of another (delinquent owner) to obtain the payment of a debt or the satisfaction of an obligation.
-Placing lien protects the association's interests |
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Term
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Definition
Decision by judge to allow the association to claim the owner's personal property to settle a delinquent account |
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Term
Accrual basis of accounting |
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Definition
Records income when it is earned (or assessed to owners) and expenses when they are incurred or acquired |
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Term
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Definition
-Anything owned that has value
-Unlike businesses - actual land and buildings of the association are not generally shown as an asset |
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Term
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Definition
Examination of the accounting records and procedures of an organization by a CPA for the purpose of verifying the accuracy and completeness of financial records. |
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Term
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Definition
Summary of community's financial position at a specific point in time |
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Term
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Definition
Records income when collected and expenses when they are paid |
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Term
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Definition
When CD is reinvested together with accumulated interest - ultimate yield will be higher than the stated rate of interest |
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Term
Commercial reporting method |
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Definition
Combines operating and reserve activities in the same column, as opposed to fund reporting, which consists of preparing seperate columns for operating, reserve and any special funds |
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Term
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Definition
Presentation of financial statements by CPA withou tthe assurance that the information conforms to GAAP |
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Term
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Definition
Certified Public Accountant
-passed certain examinations and met statutory and licensing requirements of a US state |
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Term
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Definition
CPA will send engagement letter when hired
-describes nature of the work to be done
-type of report to be prepared
-fee for services
-time frame for assignement |
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Term
FDIC
Federal Deposit Insurance Corporation |
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Definition
Gov't agency that guarantees investors deposits in member institutions |
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Term
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Definition
Preparing seperate columns for operating, reserve and any special funds |
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Term
GAAP
Generally Acceptable Accounting Principles |
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Definition
Purpose is to provide uniformity among reports from different organizations |
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Term
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Definition
Purchase of anything w. money value for the purpose of generating additional money over time (savings accts, CDs, stocks etc) |
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Term
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Definition
Return received on an investment |
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Term
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Definition
What is owed to others or collected in advance (assesments received prior to billed months) |
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Term
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Definition
Fund balance under the fund method of reporting
-Equals the difference between the association's assets and liabilities |
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Term
Modified cash basis of accounting |
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Definition
Income and expenses on cash basis
-selected items on accrual basis
-varies in format depending on number of items accrued |
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Term
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Definition
amount elft afted deducting expenses from income |
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Term
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Definition
Loss occurs when expenses are greater than income |
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Term
Notes to financial statements |
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Definition
-Accompany the CPA-prepared financial statements
-footnotes provide additional information to help the reader understand the association's financial situation |
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Term
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Definition
CPA letter that states the info the association provides is true to the best of its knowledge |
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Term
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Definition
Summary of the flow of funds into and out of community association
-summaries are prepared for normal operations
-investment activities
-any borrowing activities |
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Term
Statement of income and expense |
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Definition
Report records association's financial transactions during a given period of time - usually form month and fiscal year to date
-A way to keep track of association's financial activity |
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Term
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Definition
-Short term instruments that mature in 13, 26 or 52 week periods.
-minimum denominations of 10K
-anything larger in 5k increments
-Buyer receives promised earnings as soon as bill is purchased
-when bill matures, buyer receives face value (value indicated on the wording of bill) |
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Term
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Definition
treasury notes - mature in 1 - 10 yrs
treasury bonds - mature more than 10 yrs
-both issued in denominations from 1k - 100K
-interest bearing with interest paid every 6 months
- when note or bond matures - buyer receives full face value |
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Term
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Definition
depreciated value of an item |
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Term
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Definition
Provisions in CGL (comprehensive general liability) include the language providing coverage to the community association with respect to damages resulting in "misappropriation of advertising ideas or style of doing business" or "infrindgement of copyright, slogan or title." |
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Term
Agreed amount endorsement |
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Definition
Provides for an agreed upon limit of property insurance |
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Term
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Definition
Standard element in most property policies that obligates the insured to maintain a certain limit of property insurance based on a stated percentage |
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Term
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Definition
Section of policy is like the tile page of a book. Includes info like name, address and period of coverage |
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Term
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Definition
basic provisions that apply to all insurance coverages in the pachage. For example, when to file proof of a loss or what happens when premium is not paid. |
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Term
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Definition
Covers valye of any undamaged portion of a building which may have to be replace due to building laws |
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Term
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Definition
Entering into a contract that will, amont other things, transfer the association's legal responsibility for any loss |
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Term
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Definition
Allows owner to bring a claim against his or her association.
-Coverage is in the owner's interest
-Standard for owners to be insured in liability insurance for condos and cooperatives
-planned communities must see to it that this concept is prsent in their liability coverage |
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Term
Directiors and officerc liability insurance |
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Definition
Designed to pay for damages arising from wrongful acts that do not lead to property damage, bodily injury, advertising or personal injusty |
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Term
Direct writer system of insurance |
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Definition
comprised of employees of a single ins. company who only place the ins. of that company |
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Term
Electronic data processing
EDP |
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Definition
Ins. may be needed for comp. equipment, networks, websites, security systems, protection from hackers, and simila info technology exposures. |
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Term
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Definition
Expand, contract or clarify coverage |
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Term
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Definition
Involves avoiding circumstances that would expose association to certain type of loss |
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Term
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Definition
Covers value of demolishing any undamaged portion of building |
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Term
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Definition
protects against employee dishonesty which may lead to theft of money, securities or property |
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Term
HO-1,-2,-3, -4, -5, -6 policies |
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Definition
1,2,3 & 5 - policies for owner occupied units
4 - tenant policy
6 - condo or cooperative ins. |
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Term
Liability exposure to loss |
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Definition
liability losses arise when a person or entity threatens or actually brings a legal claim against association, its member or others whom it must indemnify by contract (like management) |
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Term
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Definition
Injury arising from:
libel, slander, false arrest invasion of privacy, wrongful entry, malicious prosecution |
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Term
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Definition
Inventory, furniture, fine arts, equipment, supplies, machinery, electronic data processing (EDP) and valuable papers/records |
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Term
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Definition
Define the type of ins. coverage provided.
ex - property, liability and boiler and machinery
-also defines how comprehensive coverage is, what is included and excluded |
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Term
Property exposure to loss |
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Definition
Losses can be tangible association property (buildings and contents) or intangible (information, websites) |
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Term
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Definition
Buildings, land and newest type of property exposure |
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Term
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Definition
Obtaining resources to pay for any financial consequences of accidental loss |
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Term
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Definition
Duplication or seperation of property exposures to loss |
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Term
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Definition
coverage purchase by an insured (first party) from an insurer (second party) for prtection against claim of another (third party) |
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Term
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Definition
insurer waives right to require the association to transfer recovery right to the insurer regarding unit owners |
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Term
Emergency services maintenance |
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Definition
Ability to respond to unpredictable problems
-sewer backups, slope failures, roof leaks and frozen pipes
-key to successful response is to ainticipate different possibilities and develope a plan to respond to each one |
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Term
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Definition
process of operating, maintaining, repairing and replacing common property |
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Term
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Definition
aka punch list
compilation of all maintenance needs identified during an inspection |
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Term
Maintenance contact sheet |
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Definition
management control to record various maintenance services and information needed in case of an emergency |
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Term
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Definition
tells when maintenance was done |
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Term
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Definition
Means to track, record, remind or command attention
-usually forms or docs |
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Term
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Definition
Periodic maintenance to avoid disruptive breakdowns and prolong useful life or physical asset in questions |
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Term
Requested or corrective maintenance |
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Definition
Requested by owner, tenant or the board
-or identified during routine inspection |
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Term
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Definition
Management control used to keep track of who is responsible for maintenance of various property elements or areas |
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Term
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Definition
Consists of replcing physical assets as they wear out or break
-considered a part of maint. b.c it addresses the useful life of asset |
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Term
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Definition
Form for assigning work to be done in any one of the five maintenance programs |
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Term
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Definition
States that neither party may assign its obligations under the contract to any other person without the express written consent of the other party |
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Term
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Definition
aka RFP - req. for proposal
-announcement that org. is interested in receiving proposals for a particular project |
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Term
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Definition
detailed instructions about products or services requested through bid req.
All contract terms should be included in bid req. |
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Term
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Definition
-Agreement between two or more parties
-enforceable by law
-each party promises to do or not do something |
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Term
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Definition
failure of either party to fulfill terms of contract |
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Term
Entire obligaton provision |
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Definition
Provision that states that the written, signed contract constitutes the entire agreement between the parties |
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Term
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Definition
states that law of a particular state will be applied if there are any disputes about the contract after it is signed.
-Useful when association and contractor are out of different states |
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Term
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Definition
States contract may not be modified in any ay unless such modification is written and signed by both parties |
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Term
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Definition
-Comes in package w/ performance bond
-Guarantees that contracto's suppliers and any subcontractors will be paid if the contractor does not pay them |
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Term
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Definition
Guarantee by surety (third party) to protect association of contractor failt to perform or finish the work.
-cost to association involved
-typically used with certain large projects |
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Term
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Definition
Partial payments based on profress in completing work involved |
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Term
Prospective bidder's questionnaire |
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Definition
aka qualification sheet
-Asks for certain types of info to determine if the bidder is technically and financially qualified to handle job of this scope |
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Term
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Definition
aka bid request
Announcement that org is interested in receiving proposals for a particular project |
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Term
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Definition
States if court finds that any clause of the contract is illegal or unenforceable, the clause shall be severed (seperated) from the rest of the contract so that whole contact remains binding |
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Term
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Definition
document which gives up the right to make a claim against association for payments not received |
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Term
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Definition
States that a waiver (permission) by one party of any breach of contract by other pary shall not act as a gener waiver of future breaches |
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Term
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Definition
Should state what is covered, for how long and what the contractor will do if the work or product proves defective |
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Term
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Definition
aka personnel manual
-summarizes company behavior reqs
-outlines benefits offered
-gives tools that can be used to enforce disciplinary action of needed
-employer designs to answer employees questions before asked
-to advise on company policy that employee might not consider |
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Term
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Definition
Statement that an association can dismiss an employee without cause at any time |
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Term
FICA
Federal Insurance Contributions Act |
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Definition
Requires employers and employees to make matching contributions to social security
-employer must withold employee's share of tax directly from wages or salary |
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Term
FLSA
Fair Labor Standards Act |
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Definition
Act addresses min wage reqs, max hrs of work & overtime pay |
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Term
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Definition
required duties of positions, skills and knowledge necessary to perform duties and reporting relationships of the positions |
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Term
OSHA
Occupational Safety and Health Administration
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Definition
agency responsible for promulgating rules, setting health and safety standards, and overseeing enforecement - either by direct federal effort or by relying on state enforcement programs |
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Term
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Definition
process of reviewing a person's work performance to determine the extent to which his/her established golas and standards have been met |
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Term
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Definition
Those regular and special tasks management expects an employee to perform during a certain time period |
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Term
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Definition
process of establishing performance goals and standards for an employee |
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Term
Progressive discipline system |
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Definition
Procedure whereby performance problems are brought to the employee's attention and the employees employer take appropriate actions to correct them |
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