174Making good of deficit

174 Making good of deficit (1) The operator of a retirement village must make good a deficit in the annual accounts of the village for a financial year of the village (a deficit).

Surplus or deficit of accounts Division 7.6 (2) The operator of a retirement village must not— (a) carry forward a deficit to a later financial year for the village; or (b) ask or receive from the residents of the village a special additional payment for making good a deficit; or (c) increase or purport to increase recurrent charges payable by the residents of the village in a financial year for the village for making good a deficit; or (d) use all or part of the recurrent charges collected by the operator in a financial year for the village to make good a deficit; or (e) use all or part of the capital works fund for the village to make good a deficit. (3) Despite subsection (2), a regulation may prescribe circumstances in which an operator of a retirement village may— (a) increase the recurrent charges payable by the residents of the village for making good a deficit; or (b) use all or part of the recurrent charges collected by the operator for making good a deficit; or (c) carry forward a deficit to a later financial year for the village. (4) The operator of a retirement village must not charge the residents of the village interest in relation to a deficit.