sec.117Administrative, sinking and promotion funds [ SM, s 167 ]

sec.117 Administrative, sinking and promotion funds [ SM, s 167 ]

The body corporate must establish and keep an administrative fund and a sinking fund. The body corporate must pay into its administrative fund any amount received by the body corporate that is not required— under subsection (3) to be paid into its sinking fund; or under subsection (5) to be paid into its promotion fund. The body corporate must pay into its sinking fund— the amount raised by way of contribution to cover anticipated spending of a capital or non-recurrent nature, including the periodic renewal or replacement of major items of a capital nature and other spending that should be reasonably met from capital; and amounts received under policies of insurance for destruction of items of a major capital nature; and interest from investment of the sinking fund. If the body corporate adopts a promotion fund budget, it must also establish and keep a promotion fund. The body corporate must pay into its promotion fund— the amount raised by way of contribution to cover anticipated spending for the purposes of scheme promotion that has been agreed on by all owners who have agreed to contribute to the fund; and interest from investment of the promotion fund. The administrative, sinking and promotion funds may be invested in the way a trustee may invest trust funds. All amounts received by the body corporate for the credit of the administrative, sinking or promotion fund must be paid into 1 or more accounts kept solely in the name of the body corporate at a financial institution. All payments from the administrative, sinking or promotion fund must be made from the account or accounts. Funds must not be transferred between the administrative fund, the sinking fund and the promotion fund. All payments from the administrative, sinking or promotion fund may be made only on receipt of— a written request for payment; or written evidence of payment, including, for example, a receipt. (sec.117-ssec.1) The body corporate must establish and keep an administrative fund and a sinking fund. (sec.117-ssec.2) The body corporate must pay into its administrative fund any amount received by the body corporate that is not required— under subsection (3) to be paid into its sinking fund; or under subsection (5) to be paid into its promotion fund. (sec.117-ssec.3) The body corporate must pay into its sinking fund— the amount raised by way of contribution to cover anticipated spending of a capital or non-recurrent nature, including the periodic renewal or replacement of major items of a capital nature and other spending that should be reasonably met from capital; and amounts received under policies of insurance for destruction of items of a major capital nature; and interest from investment of the sinking fund. (sec.117-ssec.4) If the body corporate adopts a promotion fund budget, it must also establish and keep a promotion fund. (sec.117-ssec.5) The body corporate must pay into its promotion fund— the amount raised by way of contribution to cover anticipated spending for the purposes of scheme promotion that has been agreed on by all owners who have agreed to contribute to the fund; and interest from investment of the promotion fund. (sec.117-ssec.6) The administrative, sinking and promotion funds may be invested in the way a trustee may invest trust funds. (sec.117-ssec.7) All amounts received by the body corporate for the credit of the administrative, sinking or promotion fund must be paid into 1 or more accounts kept solely in the name of the body corporate at a financial institution. (sec.117-ssec.8) All payments from the administrative, sinking or promotion fund must be made from the account or accounts. (sec.117-ssec.9) Funds must not be transferred between the administrative fund, the sinking fund and the promotion fund. (sec.117-ssec.10) All payments from the administrative, sinking or promotion fund may be made only on receipt of— a written request for payment; or written evidence of payment, including, for example, a receipt.