Body Corporate and Community Management (Commercial Module) Regulation 2020
sec.119Application of administrative, sinking and promotion funds [ SM, s 169 ]
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sec.119 Application of administrative, sinking and promotion funds [ SM, s 169 ]
The sinking fund may be applied towards— spending of a capital or non-recurrent nature; and the periodic replacement of major items of a capital nature; and other spending that should reasonably be met from capital. If the body corporate has a promotion fund, the promotion fund may be applied towards spending for the purposes of promotion of the community titles scheme that has been agreed on by all owners of lots who have agreed to contribute to the fund. All other spending of the body corporate must be met from the administrative fund. The cost of repainting the common property or replacing air-conditioning plant would be paid from the sinking fund. The cost of insurance would be paid from the administrative fund. (sec.119-ssec.1) The sinking fund may be applied towards— spending of a capital or non-recurrent nature; and the periodic replacement of major items of a capital nature; and other spending that should reasonably be met from capital. (sec.119-ssec.2) If the body corporate has a promotion fund, the promotion fund may be applied towards spending for the purposes of promotion of the community titles scheme that has been agreed on by all owners of lots who have agreed to contribute to the fund. (sec.119-ssec.3) All other spending of the body corporate must be met from the administrative fund. The cost of repainting the common property or replacing air-conditioning plant would be paid from the sinking fund. The cost of insurance would be paid from the administrative fund.
- (a) spending of a capital or non-recurrent nature; and
- (b) the periodic replacement of major items of a capital nature; and
- (c) other spending that should reasonably be met from capital.
- 1 The cost of repainting the common property or replacing air-conditioning plant would be paid from the sinking fund.
- 2 The cost of insurance would be paid from the administrative fund.