7.1 Reserve Study. Unless the Association has only nominal reserve costs or the cost of a reserve study or update would exceed 10% of the Association's annual budget, the Association shall:

 

7.1.2 Cause to be prepared an initial reserve study and annual updates in accordance with RCW 64.90.545 and 64.90.550 (collectively, "Reserve Study"). The initial Reserve Study and every third year update, if required, shall be prepared by an independent reserve study professional in accordance with the Act); and

 

7.1.3 Establish one or more income-earning accounts ("Reserve Account") for the deposit of any funds for the replacement costs of reserve components ("Reserve Components") identified in the Reserve Study.

 

7.2 Reserve Account. The Reserve Account shall be administered and under the direct control of the Board.

 

7.2.1 The Board may withdraw funds from the Reserve Account to pay for replacement costs of Reserve Components not included in the Reserve Study.

 

7.2.3 The Board may withdraw funds from the Reserve Account to pay for unforeseen or unbudgeted costs that are unrelated to replacement costs of the Reserve Components, provided:

 

7.2.3.1 The Board shall adopt a schedule to replace the withdrawn reserves within twenty-four months unless the Board determines that repayment within twenty-four months would impose an unreasonable burden on the Owners.

 

7.2.3.2 The amount of any such withdrawal, the current deficiency in reserve funding on per Lot basis, and the repayment plan shall be included with the annual Budget provided to Owners.

 

7.2.4 All withdrawals from the Reserve Account shall be recorded in the Association's minute books.

 

7.3 Owner's Demand for Reserve Study. Should the Board fail to prepare a required Reserve Study for a period of three years or more, 20% or more of the Owners may issue a written demand, 'which shall reference RCW 64.90.555, to the Board that the cost of a Reserve Study be included in the next annual Budget and that the Reserve Study be prepared by the end of that Budget year. Upon receipt of the demand, the Board shall include the cost of a Reserve Study in the next Budget and, if that Budget is not rejected by a majority vote of the Owners, arrange for the preparation of a Reserve Study. One or more Owners may bring an action to enforce the requirements of this Article 7. In such an action, a court may order specific performance and may award reasonable attorneys' fees and costs to the prevailing party. An Owner's duty to pay Assessments is not excused because of the Association's failure to comply with this Article 7. A Budget ratified by the Owners is not invalidated because of the Association's failure to comply with this Article 7.

 

7.4 Immunity from Liability. Except for an award for attorneys' fees and costs under Section 7.3, the Association shall not be liable for monetary damages or other liability awarded against or imposed upon the Association, its Officers, or Board members, or upon any person who may have provided advice or assistance to the Association, its Officers, or Board members, for failure to establish or replenish a Reserve Account or have a current Reserve Study prepared or updated, or to include information regarding Reserve Account withdrawals in the Budget.