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Business Tenancies (Fair Dealings) Act 2003
37Repayment from sinking fund after destruction etc. of building
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37 Repayment from sinking fund after destruction etc. of building
(1) This section applies to the landlord under a retail shop lease of a
retail shop that provides for the establishment of a sinking fund to
fund provision for major items of repair or maintenance.
(2) If the building or retail shopping centre in which the retail shop is
located is destroyed or demolished or the retail shopping centre
ceases to operate, the landlord must repay to each tenant liable to
contribute to the sinking fund the amount payable to the tenant
determined in accordance with subsection (3).
(3) The amount payable to the tenant is that proportion of the total
amount outstanding to the credit of the sinking fund that is equal to
the proportion that the lettable area of the tenant's retail shop bears
to the total lettable area of all the shops in respect of which
contributions are required to be made to the fund.
(4) In this section:
landlord and tenant mean the persons who were the landlord and
tenant, respectively, under a retail shop lease immediately before
the destruction or demolition of the building or immediately before
the retail shopping centre ceased to operate.