Why would a condo with zero dollars in reserve funds take out line of credit?

To stave off the inevitable?

in case there is an emergency expense?

Isn't that EXACTLY who would take out a line of credit? A condo with a big reserve fund WOULDN'T take out a LOC because it wouldn't need it. They are taking out the LOC in lieu of an assessment.

Just curious, but is several hundred thousand dollars the typical amount of money that a condo would keep in its reserve fund? We've seen several buildings which require that a buyer pay the equivalent of 2 or 3 months maintenace to be placed in the reserve fund if you want to purchase an apartment in the building? How common is that requirement for condos?