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Business Tenancies (Fair Dealings) Act 2003
36Limits on sinking funds
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36 Limits on sinking funds
(1) This section applies to the landlord under a retail shop lease that
provides for the establishment of a sinking fund to fund provision for
major items of repair or maintenance.
(2) The landlord must not establish more than one sinking fund at any
one time in respect of retail shop leases for retail shops situated in
the same building or retail shopping centre.
(3) The landlord must not require or accept contributions to the sinking
fund in respect of a retail shop situated in a retail shopping centre
that total an amount that is more than 5% of the total of the
landlord's estimated outgoings for the year concerned in respect of
the retail shopping centre.
Business Tenancies (Fair Dealings) Act 2003 31
(4) The landlord must not require or accept contributions by a tenant to
the sinking fund if the amount outstanding to the credit of the
sinking fund is more than 250 000 monetary units.