260Costs of operator’s legal advice or proceeding

260 Costs of operator’s legal advice or proceeding (1) The residents of a retirement village are not liable to pay any costs the operator of the village incurs or expects to incur in obtaining legal advice, or undertaking a legal proceeding, in relation to the village unless— (a) the costs appear in the approved annual budget for the village; or (b) section 52 (Costs of preparation of village contracts) applies. (2) If the residents refuse to consent to the inclusion of the costs as an item in a proposed annual budget, the ACAT may, on application by the operator under section 163 (ACAT orders—decisions about spending), order spending on those costs if the ACAT decides that— (a) the legal advice or proceeding is wholly in the interest of the residents; and (b) the costs are reasonable in the circumstances. (3) This section does not apply in relation to costs awarded in favour of the operator and against a resident of a retirement village in a legal