sec.40Sinking fund for major maintenance and repairs

sec.40 Sinking fund for major maintenance and repairs

This section applies if a lessee under a retail shop lease is required to pay amounts ( maintenance amounts ) into a sinking fund for major maintenance of, or repairs to— the buildings, plant and equipment of, and areas used in association with, the retail shopping centre in which the leased shop is situated; or the building in which the leased shop is situated and the plant and equipment of, and areas used in association with, the building; or the leased shop and the plant and equipment of, and areas used in association with, the leased shop. The lessor may keep only 1 sinking fund for the purposes mentioned in subsection (1) . The lessor must pay maintenance amounts paid by the lessee for the credit of the sinking fund into an interest bearing account kept by the lessor. The lessor must only apply amounts standing to the credit of the sinking fund and interest earned on the fund for a purpose mentioned in subsection (1) . The lessor is liable to pay into the sinking fund any deficiency attributable to a failure by the lessor or any predecessor in title of the lessor to comply with subsection (4) . The total payments into the sinking fund by all lessees of the retail shops to which the fund relates for any year must not be more than 5% of the total of the lessor’s estimated outgoings for the retail shops for the year. The lessor must not seek or accept payments of maintenance amounts from a lessee of a retail shop that would result in the amount standing to the credit of the sinking fund being more than $100,000. s 40 amd 2006 No. 4 s 23 ; 2016 No. 21 s 34 (sec.40-ssec.1) This section applies if a lessee under a retail shop lease is required to pay amounts ( maintenance amounts ) into a sinking fund for major maintenance of, or repairs to— the buildings, plant and equipment of, and areas used in association with, the retail shopping centre in which the leased shop is situated; or the building in which the leased shop is situated and the plant and equipment of, and areas used in association with, the building; or the leased shop and the plant and equipment of, and areas used in association with, the leased shop. (sec.40-ssec.2) The lessor may keep only 1 sinking fund for the purposes mentioned in subsection (1) . (sec.40-ssec.3) The lessor must pay maintenance amounts paid by the lessee for the credit of the sinking fund into an interest bearing account kept by the lessor. (sec.40-ssec.4) The lessor must only apply amounts standing to the credit of the sinking fund and interest earned on the fund for a purpose mentioned in subsection (1) . (sec.40-ssec.5) The lessor is liable to pay into the sinking fund any deficiency attributable to a failure by the lessor or any predecessor in title of the lessor to comply with subsection (4) . (sec.40-ssec.6) The total payments into the sinking fund by all lessees of the retail shops to which the fund relates for any year must not be more than 5% of the total of the lessor’s estimated outgoings for the retail shops for the year. (sec.40-ssec.7) The lessor must not seek or accept payments of maintenance amounts from a lessee of a retail shop that would result in the amount standing to the credit of the sinking fund being more than $100,000.