Reserve Funds - Usage

I have read several of the discussions regarding reserve funds and they all talk about common area maintenance and capital improvements. Could a reserve also be set up in anticipation of expenses incurred through the covenant enforcement process? For example, could the reserve be specifically designated for legal fees? Without this reserve, an HOA may not have the necessary resources to properly litigate a covenant enforcement issue.

Thanks.

We have several 'contingency' funds in our budget. None are huge amounts of money, but cover things like violation notice mailings (which have to go via certified mail in our assoc), property lien fees for unpaid dues, miscellaneous landscaping replacement, etc.