Page 6 - BOD 4-20-17

CBA Board of Directors, CBA office, Thursday, April 20, 2:00pm-4:00pm Page 6.

Reserve Policy

Estimate
CBA Account Purpose Approval Requirement
2/28/17
Operating Reserve $370,000
(Checking/Savings)
Operating Reserve $500,000 Approved by Board and Finance
To be used when Committee during regular meetings.
there is a “red”
budget year or when Unbudgeted expense: Any
we have an expenditure of $10,000 or more
unexpected budget requires the Finance Committee and
item that causes a officers to approve. Any expenditure
“red” year. over $50,000 requires the Board
approval (simple majority).
First Tier Reserve $250,000 To be used for
situations that are not
budgeted for and
significant to the Approved by the Officers, the
banking industry Finance Committee and the Board by
(examples could be a super majority (75%)
amicus briefs,
lobbying efforts, ballot
issues…
Catastrophic $500,000 To be used in an
Reserve extreme Approved by the Officers, the
circumstance that has Finance Committee and the Board by
a catastrophic impact a super majority (75%)
in the industry

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After that, real estate (4 floor of 140 E 19 Ave., Denver) could be borrowed against or sold.

Colorado Bankers Association 140 East 19th Avenue, Suite 400, Denver, Colorado 80203
Phone: 303.825.1575, Fax:303.825.1585, www.ColoradoBankers.org, www.SmallBizLending.org, www.FinancialInfo.org
Creating a stronger economy and helping Coloradans realize dreams by building better banks.